Dollar runs back the other way after hot start to the new year

The flows did the talking yesterday and now we're seeing markets settle down and run things back the other way. The dollar was all hot to start the new year but it is cooling off just the day after as we see the greenback fall across the board now. USD/JPY is down 0.6% to 130.20 and looking towards testing the 130.00 mark once again as we look towards European trading.

Meanwhile, EUR/USD is up 0.4% to 1.0590 and GBP/USD is up 0.5% to push back above the 1.2000 level. The latter is also taking aim back at the 200-day moving average, seen at 1.2027, after holding a defense of the 23.6 Fib retracement level of the swing higher since September last year.

Elsewhere, the antipodeans are also solid gainers on the day with AUD/USD AUD/USD The AUD/USD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one Australian dollar. For example, when the AUD/USD is trading at 0.7500, it means 1 Australian dollar is equivalent to 0.75 US dollars. The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the US Dollar The AUD/USD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one Australian dollar. For example, when the AUD/USD is trading at 0.7500, it means 1 Australian dollar is equivalent to 0.75 US dollars. The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the US Dollar Read this Term up over 1.5% to 0.6840 and threatening its 200-day moving average (blue line) as well as key trendline resistance (white line):

The dollar drop comes as we see another fall in bond yields, with 10-year Treasury yields being down another 3.4 bps on the day to 3.705%. In turn, that is pushing gold to fresh highs since June last year with the yellow metal up 0.9% to $1,857 at the moment.