- Major indices move higher. Dow erases losses from last week/Nasdaq higher but lags
- It's RBA decision day: What else is coming up in Asia-Pacific trade
- RBNZ Bascand: CBs must continue to look forward to guard against the unpredictable
- WTI crude oil futures settle at $69.49
- Bitcoin staying above 200 day moving average today
- European indices close with solid gains
- JP Morgan moves BOE tightening start from December to February
- China Turns from Stick to Carrot
- Conference Board employment trends index for November 114.49 versus 113.03 in October
- EU looking to ease some travel restrictions on Southern Africa
- The AUD is the strongest and the JPY is the weakest as North American trader enter for day
- ForexLive European FX news wrap: Cautious optimism awaiting omicron verdict
The US stocks moved higher with the rotation into the Dow big cap cyclicals leading the way. The S&P and Nasdaq indices were also higher but lagged behind. Nevertheless, all 11 sectors in the S&P index moved higher led by consumer staples, communications and industrials. The Dow industrial average erased its losses from last week. The Nasdaq recovered some of its recent losses but is still 6% from it's all time high.
In Europe today, the major indices had solid gains across the board.
Below are the stock summaries for the major US and European indices.
In the US debt market today, the yield curve changes saw increases in the longer end after a sharp flattening last week saw the gains mostly in the shorter end (with longer yields moving lower)> The 10 and 30 year yields move up by 9.5 and 9.7 basis points respectively. This week, the US treasury will auction 3, 10 and 30 year issues. The move higher in the longer end might be in reaction to that added supply this week.
In the forex, the AUD is the strongest of the majors and the JPY is the weakest.
The AUD move higher was steady and comes ahead of the RBA decision in the new trading day. For the AUDUSD, it fell to a low of 0.6992 on Friday and 0.6993 today which was between the most recent swing lows that go back to September and November 2020 when the pair bottomed between 0.6990 and 0.7005. The pair has rotated higher to 0.7050 ahead of the rate decision and sits between the floor below and the falling 100 hour MA at 0.70816 above.
The USDJPY was another currency that saw trend like moves (for it to the upside). The pairs low for the day was in the early Asian hours at 112.83, and reached its high for the day at 113.547 in the US afternoon. The move higher saw the pair extend above the 100 hour MA at 113.139 and stay above that level during the day. The 200 hour MA is resistance above at 113.673 in the new trading day. The price has not traded above that MA since November 26.
The USDCHF also trended higher today after breaking above its 100 hour MA (currently at 0.92038) and 100 day MA (at 0.91984) in the Asian session and continuing that run with a break of the 200 hour MA in the NY session (currently at 0.9240). The high price stalled near the 50% midpoint at 0.92652 before wandering lower into the close (at 0.9254).
The USDCAD peaked in the early Asian hours at 1.28533 and moved below the 100 hour MA at 1.2786 in the late European morning market. IN the North American session, the price moved down to test the 200 hour MA at 1.27592. The price dipped below that MA in the last few hours of trading and closing at 1.2753. It is the first time below the 200 hour MA since November 9. In the new trading day, traders will be looking for more downside momentum to confirm the break. The low from Friday at 1.2742 will be the first confirming target followed by the 1.27259 to 1.2730 area. The low from last week comes in at 1.27105 and it too will be needed to be broken to give the sellers more confidence that the high might be in place for the loonie. Recall, the jobs report was stellar on Friday, yet the price could not get and stay below the 200 hour MA. The movement below today, is a tilt in the bearish direction.
