The NZD is the strongest and the AUD is the weakest as the NA session begins

The NZD is the strongest and the AUD is the weakest as the NA session begins. The USD is mixed with some modest corrective action in markets. Yesterday, US stocks tumbled and yields soared as inflation fears kicked higher. The S&P Global PMI data came in stronger than expected. Fed's Bullard reiterated his view that the Fed should move rates to 5.25% to 5.50% range with the best path being the shortest (i.e., hike by 50 bps). The comments are in line with his recent views.

US mortgage applications fell -13.3% today after a -7.7% decline last week. The 30 year mortgage rate surged to 6.62% from 6.39% last week.

In New Zealand, the Reserve Bank of New Zealand raise rates by 50 basis points and was more hawkish in their tilt:

• Too early to determine impact of Cyclone Gabrielle
• Prices for some goods are likely to spike in the weeks ahead
• Still forecasting a recession 9 to 12 months period
• Demand needs to slow significantly
• Very little discussion of a 25bp rate hike, most focus was on 50bp

Meanwhile in Australia, the AUD moved lower after softer wage data for the quarter. The AUDNZD fell -0.63% and is the biggest mover so far today. Looking at the 4-hour chart of the pair, the price has moved back below its 100 hour MA at 1.0974. Last week, the pair tested that MA only to find willing buyers (see blue line on the chart below) against it. Stay below the 100 bar MA now would keep the bears more in control with the 200 bar MA at 1.09203 and the 100 day MA at 1.0886 as the next downside targets on more selling momentum.

In other markets:

• spot gold is trading at $4.37 or 0.24% at $1839.19.
• Spot silver is trading up three cents or 0.15% at $21.86.
• WTI crude oil is trading down $0.45 at $75.91
• Natural gas is trading at $2.03 down four cents or -1.93%. The price has moved to the lowest level since September 2020
• Bitcoin is trading at $24,153 after trading as low as $23,871 and as high as $24,474 today

Overall US equity prices are rebounding after yesterday's rout to the downside saw the major indices have their worst day in 2023. The features are implying

• Dow Industrial Average up 70 points after yesterday's -697.10 point decline
• S&P index is 10.4 points after yesterday's -81.75 point decline
• NASDAQ NASDAQ The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass Read this Term index is up 44 points after yesterday's -294.97 point decline

In the European stock market Stock Market A stock or equity market is defined as the aggregation of buyers and sellers of stocks, which reflect ownership claims on businesses.These may also include securities listed on a public stock exchange, as well as stock that is only traded privately. Common examples of this include shares of private companies that are sold to investors through equity crowdfunding platforms.Unlike the past, the stock market has grown to include a more mature retail market, though nearly all investment is still don A stock or equity market is defined as the aggregation of buyers and sellers of stocks, which reflect ownership claims on businesses.These may also include securities listed on a public stock exchange, as well as stock that is only traded privately. Common examples of this include shares of private companies that are sold to investors through equity crowdfunding platforms.Unlike the past, the stock market has grown to include a more mature retail market, though nearly all investment is still don Read this Term, the major indices are lower as a catch up to the afternoon declines in US equity prices

• German DAX down -0.14%
• France's CAC down -0.28%
• UK's FTSE 100 down -0.79%
• Spain's Ibex down -0.81%

In the Asian Pacific market today:

• Japan’s Nikkei 225 -1.34%

• China’s Shanghai Composite -0.47%

• Hong Kong’s Hang Seng -0.51%

• Australia’s S&P/ASX 200 -0.3%

In the US debt market, the yields are correcting some of the gains from yesterday and are trading lower. The the run higher yesterday took some of yields up double digits (5 year yield was up 10.2 basis points while the 10 year yield was up 11.2 basis points). The U.S. Treasury will auction off five year notes at 1 PM ET: