The AUD is the strongest and the USD is the weakest as NA traders enter for the day

Technical Analysis

Author: Greg Michalowski | forex

The USD continues it's fall for the 2nd consecutive day

The USD was the weakest of the major currencies (well it was a tie with the CAD at the end of day yesterday) today on increased risk-on sentiment on hopes of a global recovery. China data showed added life overnight with retail sales returning to growth and industrial production accelerating to 5.6% from 4.8% previously. The USDCNH reached it's highest level since May 2019 on the news.  

The USD continues it's fall for the 2nd consecutive dayThe ranges and changes are showing price action in the GBP pairs with the GBPUSD up 65 pips after erasing earlier Asian session declines. The AUDUSD has and oversized range as well as it was helped by China data. The RBA also release their minutes and implied the potential for further easing. That might weaken the data, but in the light of the better China data, traders considered that a good for the economy. 

The ranges and changes for the major currency pairs
In other markets:
  • Spot gold is trading up $11.63 or 0.59% at $1968.50
  • Spot silver is trading up $0.36 or 1.33% at $27.48
  • WTI crude oil futures are trading up $0.52 or 1.4% at $37.78

In the US stock market, the major indices are continuing where they left off on Monday with rises across the board.   Increased risk on demand and the set up for the FOMC meeting tomorrow is helping to improve the market sentiment
  • Dow up 154 points
  • S&P up 22 points
  • Nasdaq up 118 points
In the European equity market, the major indices are also trading higher:
  • German DAX, +0.26%
  • France's CAC, 0.6%
  • UK's FTSE 100, 1.1%
  • Spain's Ibex, +1.27%
  • Italy's FTSE MIB, +0.9%
In the US debt market, yields are mostly up marginally with the yield curve steepening. The 2 year yield is unchanged. The 30 year yield is up 2.1 basis points. Today the US treasury will auction off 20 year notes (a reopening). The 2-10 year spread is up about 1 basis point on the day to 54.51 basis points

US yields are higher
In the European debt market, the benchmark 10 year yields are trading higher with the UK yields up 2.9 basis points. The Italian 10 year yield is up 0.2 basis points.

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