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The markets are once again focused on the Geithner testimony and any added insights the Treasury Secretary may offer on resolutions to the financial market turmoil. Commodities are tracking higher with oil and gold up some 1.50% and 0.55% respectively, while all major US equity indices are higher, with the Nasdaq leading the way up over 2.00%.

CROSS COUNTRY: MIDDAY SNAPSHOT & ANALYSIS OF SELECTED RATES

The morning event risk has come and gone with US GDP coming in better than expected but failing to materially factor into price action. Initial jobless claims/continuing claims and personal consumption data was all relatively in-line with market estimates, although continuing claims did manage to rally to yet another record high. The markets are once again focused on the Geithner testimony and any added insights the Treasury Secretary may offer on resolutions to the financial market turmoil. Geithner continues to stress the importance of a coordinated global effort. The Treasury Secretary has also made it clear that he will only focus on issues pertaining to what needs to be done rather than on who needs to be doing things. Standout price action on Thursday comes from Nzd/Usd which leads all currencies, up well over 2.0% against the USD. On the other side, the Yen, Sterling and Swissy have been the big losers on the day against the greenback. Sterling has been well offered following the release of the earlier much weaker than expected retail sales data. Commodities are tracking higher with oil and gold up some 1.50% and 0.55% respectively, while all major US equity indices are higher with the Nasdaq leading the way up over 2.00%. Looking ahead, all eyes will be keenly focused on the NZD GDP realease due at 21:45GMT.

ANALYSIS OF SELECTED RATES

Nzd/Usd - Despite the break to fresh multi-day highs, we continue to look for opportunities to be short of the higher yielding currency given the severely overextended levels. Both the daily RSI and stochastics suggest that a more significant pullback is imminent and we will once again utilize daily ATR (Average True Range) analysis to provide an entry point for a fresh short position. Position: SHORT @0.5790 FOR A 0.5550 OBJECTIVE, STOP 0.5915. Stops to be trailed to cost on a break below 0.5740.


Written by Joel Kruger, Technical Currency Analyst for DailyFX.com
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