The AUD is also lower as Austraiia enters its first recession in 30 years
The USD is the strongest and the EUR is the weakest as NA traders enter for the day. In Europe Spain employment was worse than expected. German’s retail sales were not very good for the 2nd consecutive month. Technically, the EURUSD rejected the 1.2000 level yesterday. The EURUSD is trading at lows for the day and dipping below the 200 hour MA at 1.18572. Australia entered its 1st recession in 30 years after 2nd quarter GDP was officially released today (-7% vs. -6% estimate). The AUDUSD is trading near session lows and cracking back below it’s 100 hour MA at 0.73409 in the s. The weakness in the EUR and AUD are leading the USD higher. Yesterday the greenback got a boost after better than expected ISM data.
The ranges and changes are showing a solid move lower in the EURUSD with a range that is near its 22 day average. The USDCAD price action is up and down in a narrow trading range. The AUDUSD is also mostly lower (-36 pips) and near its 22 day price range average (56 pips) vs average of 66 pips.
In other markets:
- Spot gold is down $ 11.07 or -0.6% at $ 1958.40
- Spot silver is down $ 0.48 or -1.7% at $ 27.63
- WTI crude oil futures are trading up $ 0.30 or 0.7% at $ 43.05
The run to the upside stocks in the US continue in premarket trading. The S&P index and NASDAQ index both closed at record record highs (the NASDAQ has reached new highs 41 times is this year). The futures are implying:
- S&P index up 23.2 points
- Dow industrial average up 149 points
- NASDAQ index up 136 points
European shares are also joining in today after closing mixed yesterday:
- German DAX, +2.2%
- France’s CAC, +2.3%
- UK’s FTSE 100, +1.7%
- Italy’s FTSE MIB, +2%
- Spain’s Ibex, +1.1%
In the US debt market yields are little changed:
In the European debt market, the benchmark 10 year yields are all trending to the downside.
ADP employment change will be released shortly with expectations for 1 million job increases in the month of August.