Dollar slightly lower ahead of European morning trade

<p>In case you missed it, from earlier:</p><ul><li><a href="" target="_blank" rel="follow">China mulls stock market rescue package backed by $278 bn</a></li><li><a href="" target="_blank" rel="follow">More on China weighing stock market rescue package backed by $278 bln</a></li></ul><p>That's the big story news as we move towards European trading today. It is what is helping to prop up domestic stocks in China, though not by much. The Shanghai Composite is up just 0.1% while the CSI 300 is up 0.2% on the day. The Hang Seng instead is the biggest beneficiary, up roughly 2.8% currently. But even so, that barely does just enough to erase the fall from yesterday.</p><p>Well, at least the Chinese yuan is able to run with the news with USD/CNY falling from 7.19 to just under 7.17 at the moment. In turn, that is helping to translate to a slightly weaker dollar as we look towards European trading.</p><p>EUR/USD is now up 0.2% to 1.0901 while USD/CHF is down 0.4% to 0.8658 on the day. If you're thinking where might China source such a huge amount of money in such a short time, the most liquid assets is one of the first few things that pop up in mind. And in that instance, selling Treasuries might be an option.</p><p>In any case, the antipodean currencies are benefiting the most at the moment with AUD/USD up 0.5% to 0.6605 and NZD/USD up 0.4% to 0.6101 currently. The former is rising back above its 200-day moving average of 0.6578 but faces some near-term resistance from its 200-hour moving average next at 0.6619.</p>

This article was written by Justin Low at

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