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

Technical Analysis

Author: Greg Michalowski | forex

The week is off

The USD is the strongest and the AUD is the weakest as NA traders enter for the day.  China had disappointing GDP (down to 4.9% from 7.9% last quarter), and industrial production (down to 3.1% vs 5.3% last quarter). In NZD overnight, inflation was much higher than expected at 2.2% (vs 1.5% estimate) for the quarter. Despite the rise, the NZD is mixed, helped by the decline in the AUD (off China news) which is the weakest of the majors (PS the NZDUSD stalled near the 200 day MA as well 0.70974). The USD is the strongest of the majors as North American traders enter for the day. 

US industrial production will be released at 9:15 AM along with capacity utilization. The NAHB housing market index will be released at 10 AM ET  
  
The week is off

IN other markets:
  • Spot gold is trading up $1.25 or 0.07% at $1767.25
  • Spot silver is up six cents or 0.29% at $23.32
  • WTI crude oil futures is trading trading at $83.52. That's up $1.20 on the day. Crude hit its highest level in seven years and is up for the third consecutive day
  • Bitcoin is still above $60,000 at $60,959.29. The high on Friday reached $62,944. The high price today stalled just ahead of that number at $62,679
In the pre-market for US stocks, the US stocks are trading lower after last week's moved to the upside. The futures are implying:

  • Dow industrial average -120 points after Friday's 382.20 point rise
  • S&P index is down -13.10 points after Friday's 33.13 point rise
  • NASDAQ index -33.75 points after Friday's 73.91 point rise
in the European equity markets, the major indices are trading lower

  • German Dax, -0.8%
  • France's CAC, -1.1%
  • UK's FTSE 100, -0.5%
  • Italy's FTSE MIB -1.1%
  • Spain's Ibex -0.85%
In the US debt market, the yields are mostly higher with the 5 year up the most with a gain of 5.0 basis points.

US yields
In the European debt market, the benchmark 10 year yields are also trading higher with German 10 year yield up to -0.142%. It traded as high as -0.116%.

European yields are higher
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