We were poised for a bit more of a risk-off mood to start European morning trade but a sudden recovery in stocks is changing that picture now on the session. As seen here, there was a sharp rebound in equities with US futures turning around as tech shares jump up. The gains now are more measured with S&P 500 futures up 0.2% and Nasdaq futures up 0.4% but that is much better than the dour mood from Asia trading at least. That in turn has seen the aussie and kiwi recover with dollar pairs now keeping little changed on the day:

AUD/USD was down around 0.6460 levels in the handover from Asia to Europe but is now trading just under 0.6500 and NZD/USD has even pared losses from 0.5955 to near 0.5990 on the day.

Besides that, dollar pairs remain more tentative but the bulls are still in a position to make use of this recipe for the next leg higher.

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