The DXY has managed to stay above 80 as currency prices continue to consolidate. The Dollar tacked on a few points to close at 80.59. Commodity currencies continue to rise as the NZD gained .44%, touching an intraday high of .7036, and closed its session near the high. In overnight trading the Kiwi gained some more ground and is currently trading right at near term resistance of .7060.
Commodities were mixed after initially selling off before retracing their losses as U.S equities rose. Gold lost 1.42% in intraday trading before pairing its losses (see chart below). It ended the day only moderately lower, giving up a $1.70 to close at 1,121.85. Oil managed to stay above $80 a barrel yielding only a 38 cent loss to finish the day at 81.49. Agriculturals sold off during the Asia and European session but remained offered well into the U.S session.
Gold Retraces Intraday Drop
Risk fears resurfaced yesterday as rating agencies put cautions out on Spain and Portugal. They also warned that some Banks in the U.K may face downgrade as Government backing programs begin to expire. After initially digesting the news, global equity markets recovered to end the day flat. With a lack of meaningful economic data on the docket Monday and Tuesday, traders were not prepared to sell off on risk. The DJIA managed to gain 11.86 points to close at 10,564.38. The Dow is looking to get back in to the Red after touching highs over 10,700 back in January.
DJIA Working Towards the Red
After a quiet couple of days the market is looking forward to some meaningful data releases. Headlining the docket for later today will be the Reserve Bank of New Zealand’s interest rate decision. Although widely expected to keep rates on hold it will be the accompanying verbiage that sets the tone. In the Eurozone there will be a number of releases including Italian Manufacturing data, German CPI and German Trade Balance figures. In the U.K, Industrial Production figures will print. Since the headline from both the Euro-zone and Britain has been risk aversion, do not expect to see too much in the way of positive price action on the backs of these releases.
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