The dollar is trading to the highs for the day against the other major currencies outside of the yen and franc. EUR/USD is now down 0.3% to 1.0868 while GBP/USD is down 0.4% to 1.2758 on the day. Commodity currencies are bearing the brunt of the pain with AUD/USD in particular now down 0.8% to 0.6635 and erasing all of its gains from yesterday.

The drop also sees sellers looking to seize back near-term control on a push below the key hourly moving averages. The confluence of the 100 (red line) and 200-hour (blue line) moving averages is at 0.6640-43.

Meanwhile, USD/CAD is also marked higher by 0.5% to 1.3695 on the day and NZD/USD down 0.4% to 0.6160 currently.

It’s an all out flight to safety in European morning trade thus far. Equities are keeping on the defensive with European indices down roughly 1% across the board. S&P 500 futures are down by 0.6% currently.

Going back to FX, USD/JPY is now down 0.7% to test the 155.00 level. The pair is down by more than 140 pips since Asia trading.

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