US dollar bid extends further with commodity currencies lagging. Eyes on USD/JPY

Asian stock markets are holding relatively steady at lower levels while the S&P 500 continues to be down 20 points. But the FX market is showign signs of strain and risk aversion.

The New Zealand dollar has extended its decline to 42 poinst and trading at 0.5628 after breaking a series of lows I highlighted earlier. The Australian dollar is also lagging and at a three day low, down 35 pips today.

The latest rout in the bond market has signaled to the market that the USD rally isn't done. The problem is that the unstoppable force may be running into the immovable object, which could be 150.00 in USD/JPY. We've come within 5 pips today and a new 32-year high in the pair.

The monthly chart is staggaring.

If we see another day like yesterday in the bond market, then it will be awfully difficult to hold the line. If it goes without an MoF defense, then it will be a signal for another round of broad US dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term strength.