The commodity currencies, AUD, NZD, and CAD are sliding sharply in early US session. The USD is also very strong. Below are USD/JPY, AUD/USD, USD/CAD, and NZD/USD 5-min charts.
The USD/JPY is rallying despite risk aversion. This shows that at the moment, with QE3 out of the way USD is attracting safety flow, but against the JPY, its strength should be checked. At this point, only a rally above 78.00 would start to build evidence of a bottom.
AUD/USD has slid below 1.06, and now the 1.0535 pivot, opening targets for 1.0345, and 1.0260.
NZD/USD is sliding very aggressively and like AUD/USD has shown reversal after a bullish August. 0.8160, and 0.80 are bearish targets from the opening weakness.
USD/CAD is targeting parity 1.0. The NFP hurt the CAD more than it did the USD.
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Fan Yang CMT
Chief Technical Strategist