Forexlive Americas FX news wrap: US dollar hits the highs of the year against JPY and AUD

<ul><li><a href="https://www.forexlive.com/news/saudi-arabia-production-for-oct-nov-and-dec-will-be-9-million-barrels-per-day-20230905/">Saudi Arabia production for Oct, Nov and Dec will be 9 million barrels per day</a></li><li><a href="https://www.forexlive.com/news/russias-novak-exports-to-be-cut-by-300000-barrels-per-day-until-year-end-20230905/">Russia's Novak: Oil exports to be cut by 300,000 barrels per day until year end</a></li><li><a href="https://www.forexlive.com/news/us-july-factory-orders-21-vs-25-expected-20230905/">US July factory orders -2.1% vs -2.5% expected</a></li><li><a href="https://www.forexlive.com/centralbank/feds-mester-we-might-have-to-go-a-bit-higher-20230905/">Fed's Mester: We might have to go a bit higher</a></li><li><a href="https://www.forexlive.com/centralbank/feds-waller-i-would-say-the-risks-to-doing-to-much-and-too-little-are-balanced-20230905/">Fed's Waller: I would say the risks to doing to much and too little are balanced</a></li><li><a href="https://www.forexlive.com/news/new-zealand-gdt-price-index-27-vs-74-prior-20230905/">New Zealand GDT price index +2.7% vs -7.4% prior</a></li><li><a href="https://www.forexlive.com/news/morgan-stanley-shifts-to-a-bearish-stance-on-emerging-market-currencies-20230905/">Morgan Stanley shifts to a bearish stance on emerging market currencies</a></li><li><a href="https://www.forexlive.com/news/us-august-employment-trends-11302-vs-11545-prior-20230905/">US August employment trends 113.02 vs 115.45 prior</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-schnabel-climate-change-is-an-existential-threat-with-large-downside-tail-risks-20230905/">ECB's Schnabel: Climate change is an existential threat with large downside tail risks.</a></li></ul><p>Markets:</p><ul><li>Gold down $13 to $1925</li><li>US 10-year yields down 9.9 bps to 4.27%</li><li>WTI crude oil up $1.12 to $86.67</li><li>S&amp;P 500 down 0.4%</li><li>USD leads, AUD lags</li></ul><p>The US dollar was strong as North American traders returned from a holiday. The driver was bond yields as they rose for a second day for somewhat-mysterious reasons. Some cite flows, other cite corporate rate-lock selling ahead of a full slate of issuance this month.</p><p>In any case, USD/JPY took out the August highs and AUD/USD fell to the lowest since November. The euro also fell to the lowest since June and USD/CAD to the highest since March.</p><p>The moves were a bit clunky and the technical momentum you would expect after the breaks didn't materialize and that has the market on edge. USD/CAD was particularly choppy as oil rallied for a ninth day and the BOC decision is tomorrow. That pair bounced around the 1.3600-1.3650 range a few times.</p><p>Equities were sluggish but the Russell 2000 was a dog today in something of a warning sign, falling 2% as regional banks slumped. At the same time, tech showed some resilience as Tesla climbed nearly 5%.</p><p>Tomorrow we get the ISM services index and I expect that to be a big test for the market and the economy. It's a good forward-looking indicator of a part of the economy that's slowing, but it's not clear how much. The consensus is for a dip from 52.7 to 52.5 but economist estimates range down to 51.1.</p>

This article was written by Adam Button at www.forexlive.com.