Trader Talk

USDX: 92.02

USD index fell in the early Euro session reaching towards 91.60 level, as Chinese official recommended purchase fewer US treasuries in the upcoming year.
It later recovers gradually in the US session to hovering around 92.00 level with US data remained strong and US 10-year bond yield broke through 2.50% to 10-months high.
This week CPI data will be vital for the USD trend. A week CPI data will give seller the reason to short the USD.

USD JPY: 111.41

USD/JPY plummeted steeply to fresh year low, following the announcement of BOJ reduce JGB purchase broke the key support level of 112.00 at a risk testing the November low (110.84), fuelled further by the Chinese’s announcement.
The strong US 10-year bond yield and strong US stock markets will support the pair above 111 level.

EUR USD: 1.1948

EUR/USD broke above 1.2000 level the beginning of London session. But bounced back and continues to trade around 1.1950 level. This pair has been driven by the USD movement and supported by the decline in French Industrial production.
Break below 1.1915 level would indicate a bearish trend of the pair.

GBP USD: 1.3500

GBP/USD testing 1.3500 level, as USD continue strengthen. Bearish movement expected if the 1.3500 level broken, and next target focus at 1.345.
Looking ahead today, Market may focus on the release of BOE Credit Conditions at 8:30pm SYD time

AUD USD: 0.7865

AUD/USD is on bullish momentum today with the strong retail sales data better than expected, forming a double top at the 0.787 level (previous top at 05 Jan). Commodities price, including copper and oil continue rising, likely to push the pair another leg higher.

NZD USD: 0.7185

NZD/USD broke above 0.7200 reaching its highest level in this year following the Chinese announcement reduce purchase of US Treasuries. However, bounce back to 0.7180 level, but continue the bullish trend for the pair.

USD CAD: 1.2544

USDCAD sold-off after a report began to circulate that China may be looking to reduce US Treasury purchases.
It immediately bounce back where USDCAD drifting higher, with the concerns from a Canadian government source that the US is about to pull out form NAFTA. This can help to create a zone of potential support that sellers can look to for down-side exposure.

VIX: 9.82

VIX falls below 10.00 level as the rally on S&P500 are not expected to be sustained. The low record level is not expected to continue. In the meantime, markets is stilling pend reactions upon active equity performance.

GOLD: $1316.52

Gold prices continue to hover below four-month highs established last week, with negative RSI divergence hinting that a pullback may be brewing.
A daily close below the 50% Fibonacci expansion at 1312.90 puts the 38.2% level at 1294.91 back in the crosshairs. Alternatively, a return to the offensive that takes prices above of the 1330 which is the September high.

OIL (WTI): $63.48

Crude oil prices go on up a bit but ultimately failed to sustain momentum as traders await API inventory flow data and monthly EIA report on short-term supply and demand trends.
Crude oil prices edged up a bit but climactically failed to sustain such momentum as traders await API inventory flow data and monthly EIA report on short-term supply and demand trends.

BITCOIN (BTC): 13,310

Bitcoin immediately fell $2000 to $13300 following the news of South Korean Justice minister preparing bill to ban crypto trade. Strong support remained at $12,888, a break below that level will lead to another leg lower to $11,150, the previous support at 22 Dec 2017.

Macro Themes in Play