TECHNICAL ANALYSIS

USD is strongest and AUD is weakest when NA traders enter for the day


US equities down at the start of the session

USD is strongest and AUD is weakest as North American traders enter for the day. Australia New Zealand dollars are lower and reports that Hong Kong plans to order a lockdown to stem a worsening virus outbreak have weighed on currencies. US stocks are down early in trade and also lead traders to “risk” the flows. Yields are lower / the yield curve is flatter. Gold is lower in response to the rising dollar.

US equities down at the start of the session

Ranges and changes show mixed activity. Commodity currencies (CAD, AUD and NZD) tend (down) and trade near extremes. USDJPY and USDCHF have narrow trading ranges at 25 and 23 pips. The GBPUSD moves lower and near its lows for the day. EURUSD was higher but came back to just negative in the morning snapshot (down -1 pip). EURGBP rose today and is trading above its 200 hour MA (currently at 0.8893) for the first time since January 11.

Ranges and changes for major currency pairs
In other markets, a snapshot shows:
  • Spot gold is trading down $ 28 or -1.49% and $ 1,842
  • Cash is trading down $ 0.78 or -3.02% to $ 25.15
  • WTI crude oil futures are down $ 1.50 or 2.82% to $ 51.63
  • Bitcoin price is trading around $ 350 or 1.16% from $ 31,563

In US equities, the major indices are lower. The NASDAQ and S&P indices closed at a record high yesterday, but the Dow industrial average missed making it a new all-time high. Today, the indices are trending more downward:

  • The S&P index is down -28.57 points. The index rose 1.22 points yesterday
  • Dow industrial average is down -241 points after dropping -12.37 points yesterday
  • The NASDAQ index is currently down 87.5 points after rising 73.66 points yesterday

In European stock markets, they trade or trade lower overall:

  • German DAX -0.7%
  • CAC of France -1%
  • UK FTSE 100, -0.7%
  • Ibex from Spain, -1.4%
  • Italy FTSE MIB -1.8%

In the US debt market, yields are lower with a flatter yield curve. The 2-10 year spread is trading at 96.46 basis points from 98.69 basis points at the close yesterday.

US yields are lower

The 10-year benchmark yields primarily trade lower, with the exception of Italian yields. Investors are selling Italian bonds and their yields have risen 3.3 basis points.

European yields are mostly lower

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