Makes a new high by 2 pips
The NZDUSD has reached to a new session high at 0.65753. That was just 2 pips higher than the earlier high.
The pair currently trades at 0.6568. There may be some corrective action if the price cannot extend to new highs at least intraday. The high from yesterday came in at 0.6561. A move back below that level on a correction could see some further selling into the weekend. Stay above and the buyers remain in control. A little battle is going on as the we comes to an end on the hourly chart.
Up $0.77. Up 1.32%
For the day, the high price extended to $59.85, while the low fell to $57.70.
The market was supported by and additional 500K cut in production announced by OPEC+. That is on top of the 1.2M cut already in place. Saudi Arabia's energy minister explained his country would also extend a voluntary cut of 400,000 b/d. So the overall cut is 2.1M.
New lows for the EURUSD
The EURUSD has just broken back below its 100 day moving average at 1.10648. The initial price fall off the employment report stalled right at that level. The price has moved down to 1.1060 on the break.
Fed on hold but people are working and spending
The good news from the better-than-expected jobs report is that people are working and if people are working people are spending. The average hourly earnings were a bit light on the MoM at 0.2% versus 0.3% estimate, but the prior month was revised higher to 0.4% from 0.2%. The YoY kicked up from 3.0% to 3.1%. Not runaway wages but moving in the right direction.
That 100 day moving average has been a support level this week
The much stronger than expected US data sent the EURUSD tumbling lower. The price fell below its 100 hour moving average 1.1082, with the next stop being the 100 day moving average at 1.1065.
The USD is mixed
With the US and Canada jobs report on deck for release at 8:30 AM ET/1330 GMT, the NZD is the strongest currency as the North American session begins and the CHF is the weakest. The USD is mixed to down with modest gains vs the EUR, GBP, CHF and bigger declines vs the AUD and NZD. The CAD is unchanged. Overnight, OPEC agreed to distribute oil cuts of 500K among its members (395K in OPEC and 105K in Russia). However, there is a loophole in that Russias condensate is not included. In China, the government waived import tariffs on pork and soybeans. That is good news for the trade negotiations as the December 15 new tariff date approaches fast.
Cable drops 40 pips today as the pound is the weakest performer
I'm not seeing any key headlines to drive pound weakness today but it is perhaps a sign of exhaustion after the run higher since the break of 1.3000. The fact that we have US non-farm payrolls on the agenda is also timely for some profit-taking I reckon.
USD/JPY down to 108.58 on the day as bonds recover from earlier setback
As things stand, sellers remain in near-term control and is looking to keep price action below the key hourly moving averages as well as the 200-day MA @ 108.87.
Oil prices have been caught in a bit of a limbo over the past two days
From a technical perspective, it is all about watching for a firm break of key levels and to go chasing said break on either side as noted by the chart.
NZD/USD continues to find a bid
The crowded short position in NZD/USD is feeling the squeeze.
The pair is up for the seventh day and has tacked on another 15 pips in Asia on an otherwise-quiet day. It's at 0.6560 now compared to yesterday's high of 0.6562. That's the level to watch and up to 0.6567, which is the 61.8% retracement of the July-Oct drop.
Do we really need more info?
Brent has stalled out ahead of the November highs as we wait for the final OPEC decision.
For me, I'm not quite sure what we're waiting for. The 500K bpd cut has already leaked. Yes, the distribution is important and I'm sure there will be some token gestures on compliance but where does that leave us?
Small gains for the major indices
The US stocks are in the midst of an up and down day, with the most recent move more to the upside. The major indices are trading above the unchange level, with the S&P index and Dow leading the way
The earlier spike failed
Traders in the NZDUSD are making another play above its 200 day MA.
Earlier in the day, the price spiked above the MA level on it's way to the highest level since early August. Yesterday, the MA found sellers against the level. So it was not surprising to see increased buying on the break.
Can the 1.1089-82 area in the EURUSD hold support HERE
The EURUSD is a crossroad area. That area is defined by swing highs going back to November 6 (see yellow area and red numbered circles). The area comes in between 1.10894 and 1.10924. We currently trade at 1.1092.
Trendline and 50% retracement stall the rally.
As per and , the GBPUSD had topside resistance at a trendline connecting 2014 and 2018 highs at 1.3156 AND the 50% retracement of the move down from the 2018 high at 1.3167. The high price did extend up to 1.31585 - between the two levels and backed off. We currently trade back down at 1.3132.
New session lows for USDJPY
The USDJPY has fallen to a new session low as stocks falter and turn into the red.
The pair has moved down to a low price of 108.74. That is near a swing level at the 108.72-736 area. There has been some buying against the area. If the price can move below that level I would expect further selling pressure.
Dow up 38 points
the US stocks are opening higher but have given up a good amount of the premarket gains. The Dow industrial average was up around 100 points at the start of the North American session. It is currently up around 43 points.