The USD is the strongest and the NZD is the weakest as NA trader enter for the day

Technical Analysis

Risk off flows more dominant today. 8 day gain in the Nasdaq at risk.

As North American traders enter for the day, the 8 day gain in the NASDAQ is at risk as stocks move lower and risk off flows are more dominant today.  The The USD and JPY are the strongest of the major currencies as investors flow into the relative safety of those currencies. The NZD and AUD are the weakest on risk off flows. 

Risk off flows more dominant today. 8 day gain in the Nasdaq at risk.

The ranges and changes are showing the NZDUSD and AUDUSD are trading near low levels. The AUDUSD is retesting its 100 and 200 hour moving average around the 0.6890 level. The pairs have rallied the last two days. The NZDUSD is also trading at low levels. It moved below its converged 100 and 200 hour moving averages at 0.6452 earlier in the session.   The NZDUSD range at 91 pips is the largest of the majors vs the USD.  The RBNZ left both the cash rate and the size of its Large Scale Asset Purchase (LSAP, the RBNZ’s QE program) unchanged. In comments accompanying the decision and further communications from the RBNZ (minutes) the Bank expressed:

  • the willingness to do more if necessary
  • downside risks persist for the economy
  • the NZD strength is a negative for NZ exporters.
The ranges and changes for the major currency pairs
In other markets
  • Spot gold
  • WTI crude oil futures

The US stock market the major indices are lower and threatened the 8 day winning streak for the NASDAQ composite index. It close at a record level yesterday:

  • Dow industrial average, -243 points
  • S&P index, -23.5 points
  • NASDAQ index, -35 points

European shares are also trading lower across the board in Europe today:

  • German DAX, -1.7%
  • France’s CAC, -1.6%
  • UK’s FTSE 100, -2.1%
  • Spain’s Ibex, -1.4%
  • Italy’s FTSE MIB, -1.4%

In the US debt market yields are marginally higher, with the yield curve steady at around 52.8 basis points:

US yields are higher

In the European debt market, the benchmark 10 year yields are also marginally higher with investors shunning the Italian 10 year (+2.9 basis points). The German 10 year is up only 0.8 basis points. 

European yields are mostly higher

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