As London/European traders exit, the USD is the strongest and AUD is the weakest

No surprise, but as the Europe/London traders head for the exits, the USD is the strongest and the AUD is the weakest. The AUDUSD is the biggest mover vs the greenback with a move of -1.84%.

Looking at the 4-hour chart of the AUDUSD, the price moved back below the near converged 100 and 200 bar moving averages, and also the 200-day moving average. Those lows come between 0.6542 and 0.6554. The next targets on the downside come in at a swing area between 0.6476 and 0.6486. Below that and traders would look toward the low price from 2024 at 0.64417.

Looking at the equity markets, European indices are closing mixed:

• German DAX, +0.11%
• France CAC, -0.05%
• UK FTSE 100 hundred +0.33%
• Spain’s Ibex, -0.38%
• Italy’s FTSE MIB, +0.27%

A snapshot of the US markets are showing declines:

• Dow industrial average -470 points or -1.21% at 38415
• S&P index -55.55 points or -1.07% at 5153.75
• NASDAQ index -164 points or -1.01% at 16143
• Russell 2000-52.29 points or -2.51% at 2028.51

In the US debt market, yields are sharply higher with the shorter end leading the way. Remember at 1 PM, the U.S. Treasury will auction off 10 year notes. What kind of demand will we see from investors given the backup in rates? The US 10-year yield is trading at the highest level for the year and the highest level going back to November 2023.

• 2-year yield 4.947%, +20.1 basis points. That is the highest level since November 27.
• 5-year yield 4.573%, +19.7 basis points (highest since November 14)
• 10 year yield 4.517% +15.1 basis points (highest since November 27)
• 30-year yield 4.596% +9.8 basis points.

In other markets:

• crude oil is trading up $0.11 at $85.34
• Gold is trading down $15.22 or -0.65% at $2337.93
• Bitcoin is trading at $69,141 after reaching an intraday low of $67,482.

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