The GBP is the strongest and the weakest is the CAD as the NA session begins. The major currencies are all scrunched together with little in the way of movement to start the trading day. The biggest data points have been released with the Retail sales and the CPI in the rear view mirror. There have been a number of Fed speakers. However, there we DO have CPI's sister, the PPI today, employment claims, the Philly Fed index and housing starts/building permits today along with even more Fed speakers including Lisa Cook, Loretta Mester and James Bullard scheduled to speak today. So look for a nudge that is going to get the ball rolling again.
Technically, the EURUSD moved up to test its 200 hour MA today at 1.07207. A move above that level would be more bullish today, but for now the sellers have the control with the price also below the 100 hour MA at 1.07058 (current price is at 1.0699).
Overnight, there was the Australian employment report which came out weaker than expectations with employment change -11.5K versus 20 K estimate. The unemployment rate ticked higher to 3.7% from 3.5% last month (see details HERE). At 3.7%, the unemployment rate is still at low levels.
The AUDUSD initially moved lower on the news but retraced all the declines and then some (see chart below). The recent swing lows (see red numbered circles in the chart below) held support. The snapback rally saw the topside stall right at the converged 100/200 hour MA near 0.69345. The pair has moved back toward unchanged near 0.6902 to start the day, but the whippy price action is remindful of the price action off the US CPI data earlier this week. Ping ponging up and down or down and up is a theme of late.
A look at other markets to start the US session shows:
- Spot gold is up $3.08 or 0.17% at $1838.68
- Spot silver is down -$0.02 or -0.12% at $21.58
- Crude oil is up $0.39 at $78.98
- Bitcoin has continued its anti-Munger rally to $24580. The high reached $24895 and into the swing area between $24258 and $25401.
In the premarket for US stocks:
- Dow Industrial Average is down -33 points after yesterday's 38.70 point rise
- S&P index is down nine points after yesterday's 11.47 point rise
- NASDAQ indexes down after yesterday's 110.45 point rise
in the European equity markets the major indices are trading higher:
- German DAX +0.43%
- Francis CAC +1.02%
- UK's FTSE 100 +0.16%
- Spain's Ibex +0.62%
Asian Pacific markets:
- Japan's Nikkei to 25 rose 0.71%
- Shanghai composite Index fell -0.96%
- Hang Seng composite rose 0.84%
- Australia's S&P/ASX index rose 0.79%
In the US that market, yields are mixed. The two – 10 year spread is back to -81.3 basis points after reaching a new low of -88.1 basis points yesterday:
In the European debt market, the benchmark 10 year yields are modestly higher:
