The AUD is the strongest and the JPY is the weakest as the NA session begins | Forexlive
The AUD is the strongest and the JPY is the weakest as the NA session begins. The OPEC+ news over the weekend shocked the oil markets. The price of crude oil is above $80 on the news after reaching $81.69. The bull and the bear is that supply cuts could put a floor on the price, but it also says that oil producers are worried about demand. The rise is inflationary, but while it be another nudge toward slower growth. JP Morgan says that the cuts may actually be in the order of 800,000 as producers can’t meet quotas anyway. Regardless, the initial reaction is to the upside for oil.
In the forex market, the initial moves as the trading got underway in the Asian session was the US dollar higher. The USD initially rose vs all the major currencies with the exception of the CAD which tends to move higher with higher oil prices. Now as the US/NA traders enter for the day, the dollar has reversed lower and is higher only marginally vs the JPY and the CHF. It is now down over 1% vs the AUD as the AUDUSD moves above the 200 day MA at 0.67508 on a surge higher that has seen the AUDUSD move up from 0.6657 to a new day high at 0.6762 over the last 5 trading hours.
Yields in the US are higher but off the highs for the day. The Nasdaq is lower after the quarter ended on Friday with the index rising by the greatest since Q2 2020. The Nasdaq is down about 100 points after ending Friday up 208 points.
A look at the markets are showing:
- Gold is trade up $9.58 or 0.48% at $1978
- Silver is trading down eight cents -0.40% at $24.
- Crude oil is trading at $80.62 up 6.6% on the day
- Bitcoin is trading at $28,259. The weekend I reached $28,816. The low today reached down to $27,600
In the premarket for US stocks, the major indices are mixed with the Dow industrial average higher up by Chevron which is trading up at $170.27 after closing on Friday that $163.16. Other oil company shares a higher as well. The NASDAQ lags:
- Dow industrial average is up 107 points after Friday’s 415.12 point rise
- S&P index is now down -7.81 points after Friday’s 58.5 point rise
- NASDAQ index is down -103 points after Friday’s 208.44 point rise
in the European equity markets, the major indices are mixed:
- German DAX -0.13%
- Frances CAC +0.30%
- UK’s FTSE 100 +0.59%
- Spain’s Ibex -0.71%
in the Asia-Pacific markets today:
- Japan’s Nikkei rose 0.52%
- Hong Kong’s Hang Seng index rose 0.04%
- China’s Shanghai composite index rose 0.72%
- Australia’s S&P/ASX index rose 0.63%
in the US debt market, yields are higher but the shorter end moving up the most:
- two year yield 4.112% up 5.0 basis points. The high yield reached 4.139%
- five year yield 3.639% up 2.6 basis point. The high yield reached 3.66%
- 10 year yield 3.513% up 2.5 basis points. The high yield reached 3.545%
- 30 year yield up 0.6 basis points. The high yield reached 3.728%
in the European debt market, the benchmark 10 year yields are higher: