Forexlive Americas FX news wrap: China fears fizzle | Forexlive
Markets:
- Gold down $7 to $1906
- US 10-year yields up 2.3 bps to 4.19%
- WTI crude up 64-cents to $82.56
- S&P 500 up 0.6%, Nasdaq up 1.0%
- USD leads, EUR lags
Coming into the day — and given all the weekend commentary — it looked like today might be the day that disappointment in Chinese stimulus and the path of economic growth there would take down global risk assets. That was particularly true as US yields began to tick up early in the session and 10s took out the high yield of the year.
The dollar strengthened alongside yields but instead of causing a rout in risk, there was another round of buy-the-dip in equities and that helped to reverse the selling in the euro, pound and commodity currencies. They all ended the day lower but well off the lows as stocks made some impressive moves led by a 6% climb in NVDA on an analyst upgrade.
Still, some important levels were taken out as the May low in AUD/USD gave way and USD/JPY extended above 145 and through the June high. The dollar is certainly benefiting from tailwinds and a growing sense that the US economy will continue to lead the way.
Looking ahead, the Asia-Pacific session will continue to put the focus on China with some major economic releases to come.