The dollar is the laggard today and we’re seeing the losses extend to get things going in European trading. It’s not just a case of dollar weakness at the moment, as there are some key technical levels being challenged. Of note, both EUR/USD and AUD/USD are pushing past their respective 200-day moving averages:
EUR/USD daily chart
AUD/USD daily chart
That’s a big technical signal that we could be in store for a stronger retracement to the dollar gains so far this year. NZD/USD is already doing its part in a push to 0.6215 currently, up 0.5% on the day. The pair has already recovered more than half of the drop since the start of the year.
The only dollar pair which is somewhat tepid today is USD/JPY, still sticking near the 150.00 mark for now.
The dollar’s decline today seems to be tied to a surge higher in risk trades. Equities are at fresh highs for the day now as sentiment is very much buoyed by Nvidia’s earnings beat after hours yesterday.