August 23, 2016: The NZD is the strongest. The USD is the weakest.

As the North American traders enter for the trading day, the NZD is the choice currency while the USD is the weakest currency.

The NZD got it's strength from a speech from RBNZ's Wheeler who was more hawkish/less dovish. Although activity was up and down volatile during the first hour, the pair started to step higher as the day progresses.

The weakest currency is the US dollar. With Yellen approaching on Friday, the market does not really know what to think. It also seems to be a combination of USDJPY weakness (the pair is back below the 100 hour MA and dipped below the 100.00 level again), some short squeeze in the GBPUSD, EURUSD doing it's up and down lag (narrow range again), and the NZD doing it's thing. The dollar is weaker but the moves are somewhat tame.

Looking at the ranges and changes, the red line in the bottom chart shows the 22 day average (about a month of trading. Each of the bars in the chart are below the average by a lot. That could mean that there is room to roam (look for a break and extension), or the market is indifferent (summer time trading?). If we are trading we need to look for our spots. Today there is some data out of the US in the form of the Flash Mfg PMI (53.1 vs 52.9), New home sales (580K vs 592K), Richmond Fed Manufacturing (6 vs 10 last).

Europe stocks are higher as are US pre-opening levels (Nas futures up 12, S&P futures up 4.5 points). Crude oil futures (October is the new front contract) is trading at $47.10 down -0.65%. 10 year bond yields in Europe are up 1 to 4 basis points. The US 10 year yield is up 1 BP to 1.551%. There is a 2 year note auction today in the US. The current 2 year yield is 0.75%.