The USD is modestly higher vs the major currencies
The RBA kept rates unchanged as expected, but that did not stop the AUD from spiking higher on the announcment (less dovish than expected). It is the strongest currency on the day but off the highs a bit. The CHF is the weakest. The USDCHF moved to the highest level since November. The USD today is a bit higher with gains vs the CHF, GBP, and EUR. It is lower vs the AUD and near unchanged vs the JPY, CAD and NZD.
The AUDUSD is showing the most action with a 71 pip trading range. The pair moved lower into the rate decision, but is now up on the day (by 22 pips). The USDCHF is up 36 pips and is near the highs in the early North American snapshot. The USDJPY, USDCAD, NZDUSD are within 6 pips of unchanged and with narrow trading ranges of 20-31 pips (only). For the GBPUSD, the pair is moving lower and in the process is moving away from the 200 day MA at 1.30388 today. Sellers are making a play to the downside.
In other markets:
- Spot gold is up $1.18 or 0.09% at 1313.41
- WTI crude oil is down -$0.35 or -0.62% at $54.22
In the US pre-market, stocks are trading mixed with futures implying:
- Dow up 85 points
- S&P up 2.88 points
- Nasdaq down -2.71 points
European shares are trading higher today.
- German Dax, +1.06%
- France's CAC, +0.96%
- UK's FTSE, +1.25%
- Spain's Ibex, +0.40%
- Italy's FTSE MIB, +0.65%
In the US debt market yields are marginally higher:
European 10 year benchmark shares are mostly higher with German 10 year up 2.0 bps. The snapshot shows:
US Markit services and composite PMI indices will be released for January at 9:45 ET/1445 GMT. The services PMI's expected to remain unchanged at 54.2 versus the preliminary estimate.
The ISM nonmanufacturing index for January will be released with expectations of 57.1 versus 58.0 prior.
Later tonight Pres. Trump will present the State of the Union Address to the joint session of Congress. Pres Trump met with Fed Chair Powell and Vice Chair Williams at the White House last night.
