London/European traders look to exit.
As the London/European traders look to exit for the day, the CAD and USD are battling it out is the strongest of the majors, while the NZD and AUD are do the same as the weakest.
The NZDUSD and NZDCAD are sharing the distinction as the biggest mover at the snapshot with a change of 1.48%. The NZDUSD is testing its 100 day MA (see post here) at 0.71695.
Looking at the daily chart of the NZDCAD, it is testing its 50% midpoint retracement of the move up from multi year low from March 2020. That level comes in a 0.86712. The price is currently training 0.8673. They move below would open the door for a move toward the October 2020 load 0.86258 and the August 2020 swing low at 0.85752.
In other markets:
US stocks are trading at new session lows.
- S&P index is down 60 points or 1.44% 4092.08
- NASDAQ is down to 297.9 points or -2.23% at 13091.81
- Dow Jones is down -31 points or -2.25% 13088.82
Spot gold is following the USD and trading down around $15 or -0.81% at 1822.57.
WTI crude oil futures are trading up $0.86 or 1.3% at $66.12. The pipeline outage and led to shortages of gasoline along the Eastern US.
Bitcoin is trading down $-1300 or -2.29% of $55600.
In the US debt market, the tenure yield is up 5.9 basis points at 1.681%. The high yield reach 1.688%. In an hour, the U.S. Treasury will auction of $41 billion of 10 year notes.
The CPI data in the US jumped the most since 2009, topping all forecasts and increasing the debate about inflationary pressures. Feds Clarida (Vice Chair) called the report a surprise and added that it may take some time for supply to rise up to the pent up demand in the economy. Fed officials have been adamant that as result of basic facts and supply bottlenecks, the inflation will be transitory, but it is hard to ignore the surges and commodities and now consumer prices.
Having said that, there was a 10% surge in the cost of the use of vehicle prices which accounted for more than 1/3 of the increase. Shelter costs also jumped by the most in two years as rents and hotel stays (+8.8%) increased. That category accounts for one third of the overall CPI. Airline fares also posted the biggest gain on record (+10.2%).