The dollar is higher across the board as markets are adopting a more defensive risk posture on the session. There aren’t any major headlines but the retreat in bond yields and equities keeping lower points to risk-off flows. The only thing I can attribute this to would be China’s poor trade balance data, which is perhaps reigniting risks of a global recession.

In that lieu, the dollar is benefitting with EUR/USD now down 0.4% to 1.0964 and GBP/USD falling further by 0.5% to 1.2720 on the day. Both pairs are still sitting within the ranges of last Friday and Monday this week but in the case of the former, it is inviting sellers to keep up the pressure in looking for a test of the 100-day moving average (red line):

Meanwhile, USD/JPY continues to keep higher by 0.5% at 143.18 while USD/CAD is also seen up by 0.6% now to 1.3445. That comes as we see oil prices slide as well amid the poorer risk mood. The aussie is the biggest loser on the day though with AUD/USD down 1.0% to 0.6510 at the lows for the day, coming close to that test of 0.6500 at the moment.

This article was written by Justin Low at www.forexlive.com.