Markets witnessed a broad selloff on Monday amid a risk-off mood. The dollar got boosted by safe-haven bids as tensions between Russia and Ukraine intensified following a missile attack by Russia in Ukraine that killed 5 people. The UK is set to announce an emergency support program towards the end of its bond-buying scheme. There will be a lineup of central bank members today including Chicago Fed president Evans, Fed vice chair Brainard and ECB’s Lane.
The AUDUSD fell -0.84% as the dollar capitalized on safe-have bids to start the week. The Dollar was also supported by upbeat NFP data on Friday which came in at 263K vs the 250K anticipated. The AUD was weakened by a shrink in the Chinese services sector as shown by the disappointing Caixin Services PMI at 49.3 vs 54.5. A rise in COVID infections may trigger more lockdowns in China weighing on the AUD. The pair’s bulls got rejected at the 0.63800 resistance while bears may target 0.6200.
The CAD gained +0.24% in relation to the Japanese Yen as interest rate divergence continues to weigh on the Yen. The BoC is currently sitting at 3.25% while the BoJ remains ultra-loose at -0.10%. Despite retreating oil prices, the CAD continued to be strong against the Yen. In September 21,1K people got employed against 20 000 expected and the unemployment rate dropped to 3.5% vs 3.7% surveyed boosting the CAD. The pair is currently trading slightly below 106.00 and a break above may set targets at 107.50. However, a bearish run may take the pair back to 104.50.
GBPNZD traded +0.72% higher ahead of the UK’s jobs data on Tuesday. The BoE says it will increase the size of its bond-buying limit to 5 billion pounds and is set to announce additional measures to support the end of its bond-buying scheme. New Zealand’s Electronic Card Retail Sales will be released later in the New York trading hours. The pair rose after bouncing off 1.96500 support. Bulls may reclaim 2.0000 and 2.0200 if 1.9860 Friday’s high fails to hold.
European stocks were trading in a mixed style to start the week. The FTSE 100 dropped by -0.12% trading below the 7000 mark with an intraday support residing at 6920. The CAC40 was up +0.21% from 5780 and may face resistance at 5900 and 6000. DAX was up +0.76% after retesting a previous resistance-turned-support at 12130. Further up bulls may seek 12800 and 13000.
US stock futures fell as investors await US CPI data for the fed cue. The Dow Jones Industrial Average futures were down -0.11% ranging between 29070 low and 29300 intraday high. S&P 500 futures dropped by -0.16% and may retest 3600 in the near term. Nasdaq futures slumped by -0.27% with a low at 10930 and a bullish cap at 11050 on the day.
Elsewhere in commodities, gold turned south on Monday trimming last week’s gains as the Dollar surged alongside treasury yields. The yellow metal lost -0.92% as investors prefer the greenback as a safe haven on a risk-off day and increasing tensions in the Russia-Ukraine war. Bears took over at 1700 on the day and may target 1650 and 1580 if the slide continues.