North American traders enter for the day
The AUD and the NZD are the strongest of the majors as the North American traders enter for the day. The Australian employment data on the surface seemed worse than expected but as Eamonn pointed out, it was not that bad when you dig into the details (see post here). Plus the AUD and NZD benefited from a more positive tone from the report that US/China would have some trade talks. Risk on sent those pairs up a bit. The JPY is the opposite story on risk. With stocks and "risk on" flows rising, the Pavlovian reaction is to sell the JPY. The USD is mixed, but more down as AUD, NZD and EUR fall. The other pairs are mostly little changed with the USDJPY gain the most (but only 0.08%).
Looking at the changes and ranges, the major pairs vs the USD, show GBPUSD, USDJPY, USDCHF, USDCAD are all within 9 pips of unchanged on the day in the snapshot. The AUDUSD and NZD are nearer the highs but off those levels.
The ranges are light vs the 22 day averages (red line in the lower chart below). The JPY crosses have moved to the 22 day average line, but those pair's prices have moved off the highs too.
So overall, the market is happy for higher stocks and "risk on" flows (at least the bulls are happy), but it is cautious too. Are you?
In other markets:
- Spot gold is up $4.70 on the slightly lower USD. It trades at $1179.48
- Bitcoin is trading up $63 on Coinbase at $6438.
- WTI crude oil is up $0.18 or 0.28% at $65.20 after the sharp fall yesterday on higher than expected build in weekly inventories
US stock futures are implying a higher opening:
- Dow is up 240 points
- S&P is up 16 points
- Nasdaq is up 53 points
US yields are a bit higher:
European 10 year yields are mixed:
