USD weakens broadly as major currencies rally in Asian trading

The US dollar experienced widespread selling during Monday's Asian session, with all major currencies posting gains against the greenback. EUR/USD advanced 0.4% to 1.0845, while AUD/USD climbed 0.5% to 0.6520. GBP/USD rose 0.35% to 1.2680, with NZD/USD and CAD strength also evident. Even USD/CNH declined despite People's Bank of China efforts to support the dollar-yuan pair. The coordinated move suggests a fundamental shift in dollar sentiment, driven by concerns over US trade policies and their economic implications. Technical indicators show the Dollar Index (DXY) breaking below key support at 104.50, potentially targeting 104.00. The broad-based nature of dollar weakness indicates systematic unwinding of long dollar positions. Traders should prepare for continued volatility as markets reassess Federal Reserve policy expectations amid changing trade dynamics and global growth concerns.