The CHF is the strongest and the NZD and AUD are the weakest.
The NZD and AUD lead the declines helped by the China government setting a growth target of 5%.That level was the lowest in 30 years. That pushed both the NZDUSD and AUDUSD lower, and away from some key MA levels in the process (see the weekend video "Keep it Simple" for a technical review of those major currencies as well as others vs the USD).
PS the fall in the AUDUSD comes the day before the RBA is expected to increase rates by another 0.25% to 3.60%. Focus will be on the continued expected path of rates for Australia.
In addition to the AUDUSD and NZDUSD moving lower, the USDCNH has moved higher (lower CNH). Recall that last week the USDCNH fell on Wednesday when the China data showed that growth increased at its fastest pace in 8 months. In addition, the manufacturing PMI in China rose to 52.6 - the highest level in a decade. The USDCNH fell below the 200 day MA as result on that day (see green line in the chart below).
Today, the price of the USDCNH has moved back above its 200 day MA at 6.9141, and looks back toward the 38.2% of the move down from the October 2022 high at 6.9556, and the falling 100 day MA at 6.9823. Also last week, the price of the USDCNH approached that MA but backed off (see blue line in the chart below).
The EURUSD is also higher today (mostly against the AUD and NZD) after ECB's Lane, signaled more rates hikes after March ("Hiking rates beyond March fits with the inflation pressures....".
Looking at the EURUSD, the price did initially fall to the 100 hour MA (blue line in the chart below) before bouncing helped by Lane's comments. Holding the 100 hour MA was a simple technical level used by many to define and limit risk - see weekend video HERE:
A snapshot of other markets as the NA session looks to begin shows:
- Spot gold is trading down $-4.61 or -0.25% at $1851.23.
- Spot silver is down $0.10 or -0.45% $21.12
- WTI crude oil is down $-1.09 at $78.59
- Bitcoin is trading little change at $22,399. The price on Friday settled at $22,359 and traded in a narrow range between $22,170 and $22,652 over the weekend
Looking at the premarket for US stocks, the major indices are little changed after Thursday and Friday's rebound days
- Dow Industrial Average is trading down 20 points after Friday's 387.40 point rise
- S&P index up one point after Friday's 64.31 point rise
- NASDAQ index is up 22 points after Friday's 226.02 point rise
In the European equity markets, the major indices are mostly higher with the UK's FTSE 100 bucking the trend (lower).
- German DAX +0.32%
- Frances CAC +0.25%
- UK's FTSE 100 -0.61%
- Spain's Ibex +0.03%
- Italy's FTSE MIB +0.20%
In the US at that market, the US yields are moving lower to start the trading week. Recall last week the 10 year yield moved as high as 4.09%. It is currently back down at 3.912% as buyers took advantage of the higher rates. The two-year rate reached a high last week of a 4.944% (highest level going back to 2007). The rate is back down to 4.838% today.
In the European debt market, the benchmark 10 year yields are lower as well:
