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Broad-based USD weakness in early Asia

FXStreet (Bali) - The US Dollar is trading weaker across the board in early Asian trade, with the Kiwi and Aussie extending Friday's US NFP gains by over 0.25-0.3% and taking NY highs.

The current depreciation in the US Dollar is still widely perceived as corrective in nature (short term healthy long squeeze) after the US NFP headline number disappointed high market expectations, with a 300K whisper number pre-US jobs number never materializing. China trade numbers (strong exports) is undoubtedly contributing to see the rally in AXJ expand.

Technically, the vigorous bounce in AUD/USD comes on the back of key fib test (50% of the 2008-2011 rally), with the pair testing offers in the 0.8675-80 vicinity in interbank trading. Meanwhile, NZD/USD saw a breakout of 0.77 not materializing last Friday, leading to a short squeeze as weak stops get taken out.

Still long US dollars and volatility - JPMorgan

John Normand, FX Strategist at JP Morgan, notes that the US dollar is on the cusp of rallying versus every currency this year.
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EUR/USD en-route to fill upside gap

EUR/USD is trading at 1.2461 in the early going of Asian trade, with an upside gap at 1.2470 now being filled, following Friday's decent US NFP headline number, failing to meet ambitious expectations.
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