New Zealand dollar gains strength as European traders exit, US dollar weakens

As London/European traders head for the exits, the US dollar is getting hammered with the client of over 1.20% versus the EUR, GBP, CHF, AUD and NZD. The declines verse the JPY and CAD are less, but still around -0.60%.

The biggest mover is the NZDUSD with a move of 1.87%. That equals the largest gain since January 6, 2023.

Technically the price is testing a swing area near 0.5985. Just above that level is the falling 100-day moving average at 0.6000 (a nice round number). The last time the price traded above the 100-day moving average was back on August 1 when the moving average was near 0.6200. The hurdle to get above the 100-day moving average is easier as a result of the negative bias for the moving average. But is that bias looking to shift?

Another key hurdle to get above to increase the bullet bias would be the 38.2% retracement of the move down from the July high at 0.60166.

If the buyers are to take control, getting above both the 100-day moving average and the 38.2% retracement are the minimum hurdles to show the buyers mean business. Be aware

As European traders exit, the US stocks are off their highs but still holding onto solid gains:

  • Dow industrial average is up 481.04 points or 1.40% at 34819
  • S&P index is up 78.57 points or 1.78% at 4490.24
  • NASDAQ index is up 282.5 points or 2.05% at 14049.66

The Russell 2000 of small-cap stocks is the biggest winner with a gain of 76.44 points or 4.48% at 1781.90. The surge today is the largest since November 2022.

US rates are sharply lower:

  • 2-year yield 4.844% -19.7 basis points
  • 5-year yield 4.449% -21.3 basis points
  • 10-year yield 4.464% -16.7 basis points
  • 30-year yield 4.633% -11.1 basis points

In other markets:

  • Crude oil is up $0.65 or 0.82% at $78.88.
  • Gold is up $16.23 or 0.84% at $1962.
  • Silver is up $0.77 or 3.45% at $23.06
  • Bitcoin is trading modestly lower from earlier levels at $36,166

This article was written by Greg Michalowski at Source