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Dollar trades back to little changed as markets remain tentative

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The dollar is now trading more mixed but overall little changed against the rest of the major currencies bloc:

There are still a couple of key technical developments to be wary about this week though. So, while the moves today are light, it doesn’t mean that they don’t hold much significance.

  1. EUR/USD broke below its 100-day moving average of 1.0783, eyes December low of 1.0723;
  2. GBP/USD broke below its 200-day moving average of 1.2560, frees up space towards 1.2500;
  3. USD/JPY contests the highs for the year near 148.80 amid post-NFP rebound in yields;
  4. USD/CAD tests January high of 1.3541 with 100-day moving average of 1.3555 nearby;
  5. AUD/USD hugs 0.6500 again post-RBA but could eye further downside after break of 100-day moving average of 0.6531.

The overall mood in broader markets seems more tentative so far today. US futures are now flattish and that is resulting in European stocks being little changed on the day as well. As for the bond market, the selling is taking a slight breather for now. 10-year yields in the US are down 1.6 bps to 4.148% but off earlier lows of 4.123% at least.

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