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

<p>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%.</p><p>The biggest mover is the NZDUSD with a move of 1.87%. That equals the largest gain since January 6, 2023.</p><p>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? </p><p>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. </p><p>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</p><p>As European traders exit, the US stocks are off their highs but still holding onto solid gains:</p><ul><li>Dow industrial average is up 481.04 points or 1.40% at 34819</li><li>S&amp;P index is up 78.57 points or 1.78% at 4490.24</li><li>NASDAQ index is up 282.5 points or 2.05% at 14049.66</li></ul><p>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.</p><p>US rates are sharply lower:</p><ul><li>2-year yield 4.844% -19.7 basis points</li><li>5-year yield 4.449% -21.3 basis points</li><li>10-year yield 4.464% -16.7 basis points</li><li>30-year yield 4.633% -11.1 basis points</li></ul><p>In other markets:</p><ul><li>Crude oil is up $0.65 or 0.82% at $78.88.</li><li>Gold is up $16.23 or 0.84% at $1962.</li><li>Silver is up $0.77 or 3.45% at $23.06</li><li>Bitcoin is trading modestly lower from earlier levels at $36,166</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.