The strongest is the CAD and the AUD. Most of the gains in the AUD are against it’s neighbors in NZD and Japan.

The weakest is the. NZD. Weaker inflation data sent the NZD lower. The JPY is also lower today and filled a small gap at the 107.61 area (the high reached 107.625).

The Strongest and weakest currencies in trading today

The Strongest and weakest currencies in trading today

That must mean the AUDNZD is racing ahead. The AUDNZD has been trading in an up and down range – using the 100 day MA as the support and the 1.1292 as a ceiling. The pair is down near 15% from the high reached in July 2012 (see chart below). The buyers are in the control keeping the price above the 100 day MA)

AUDNZD has been in a range but above the 100 day MA (blue line)

AUDNZD has been in a range but above the 100 day MA (blue line)

Retail Sales in the UK were disappointing as well and has pressured the GBP

Today Initial Claims are expected to rise back up to 281K from the surprise low of 264K last week. Also due out today in the US is the Markit Manufacturing PMI (est 57.0) and the Leading Index (est. +0.7%). Chicago Fed National Activity Index is expected to come in at +0.15 vs -0.21 last month.

The US Initial Claims are expected to move back higher today (at 8:30 AM ET)

The US Initial Claims are expected to move back higher today (at 8:30 AM ET)

Stocks and Bonds

The US pre-market stock market is rising today. Caterpillar and GM have reported better earnings and that is lifting the Dow. In Europe, the continents shares are up but the FTSE is down after the weaker Retail Sales.

Bond yields are steady (slightly higher) vs. yesterday. The US 10 year is at 2.24% while the German Bund is trading at 0.89%.

A snapshot of the Stock and Bond Market

A snapshot of the Stock and Bond Market