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  • The USD/CNH pair revisits levels last seen 17 months ago. 
  • President Trump’s health progress and improved risk appetite weigh over the dollar. 

The USD/CNH pair is trading at multi-month lows amid a broad-based sell-off in the US dollar. 

The currency pair is currently trading at 6.7192, the lowest level since April 2019, having declined by 0.4% on Monday. 

The greenback began losing ground 24-hours ago after President Trump’s doctors said he would be discharged soon from the coronavirus hospital. The news reduced the political uncertainty and weakened the haven demand for the greenback. 

Besides, hopes for a fiscal stimulus deal look to be weighing over the greenback. “As for another stimulus package, with Trump is lagging in the polls he’ll be pushing harder for a deal before the election. A more conciliatory approach from the White House could pave the way for a deal,” BK Asset Management’s Kathy Lien noted in her daily analysis. 

Analysts polled by Reuters expect the dollar to remain on the defensive but trade volatile ahead of the Nov. 3 US Presidential election. 

As for Tuesday, the dollar may take cues from Federal Reserve’s chairman Powell’s speech, due at 14:40 GMT. 

Technical levels

Support: 6.6704 (March 2019 low), 6.50 (psyhcological level). 

Resistance: 6.75 (5-day simple moving average), 6.78 (10-day simple moving average).