The dollar index (DXY00) today is up by +0.02%. The dollar recovered from early losses and is slightly higher after the release of the stronger-than-expected US Aug new home sales report. The dollar today initially moved lower due to the strength in the Chinese yuan, which rallied to a 16-month high today on the heels of government actions this week to boost stimulus measures. Also, strength in the euro is undercutting the dollar after EUR/USD climbed to a 14-month high today on hawkish comments from ECB Governing Council member Knot.
US Aug new home sales fell -4.7% m/m to 716,000, a smaller decline than expectations of a decline to 700,000.
