Fresh lows for AUD, CAD, NZD
The US dollar is gathering strength as risk aversion rises and oil prices decline.
The Reserve Bank of Australia rate cut sent the Australian dollar lower and after a bounce, it's sliding further. Ryan had a detailed look at the AUD/USD technical analysis and highlighted 0.7500 as a level to watch. The pair is now down 141 pips to 0.7526 and has fallen a half-cent since US traders arrived.
The other interesting technical case is USD/CAD. The pair touched a fresh cycle low four hours ago at 1.2461 but has ripped back higher to 1.2607, carving out an outside reversal on the daily chart.
The S&P 500 gained 16 points on Monday but that might have been helped along by inflows because of the new month. Futures point to a 15 point loss at the open and with commodity prices also under pressure, it could worse for the commodity bloc before it gets better.
For the broader USD story, it's still way too early to crown King Dollar again. USD was battered in April and the euro touched 1.16 today after just breaking 1.15 for the first time since August yesterday.
I'm working on a forex seasonals package and one of the trends in May is USD strength. What do you think of dollar longs here?
