Markets Rise as Fed Turns Dovish, Tariff Tensions Simmer

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX. If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com

 

Forex Market

USD: Steady Despite Mixed Data and FOMC Minutes

The USD showed muted movement despite the release of the FOMC Minutes, which suggested some members support further cuts in 2025. The dollar remained under pressure amid weaker yields.

  • AUD/USD traded between 0.6510–0.6548, settling at 0.6540.
  • EUR/USD climbed to 1.17285 after dipping earlier.
  • GBP/USD touched highs of 1.36055 before drifting.
  • USD/JPY slid to 146.25 following the FOMC release.
  • USD/CAD hovered near 1.3710.
  • NZD/USD held in check, testing earlier support levels.

 

AUD: Consolidates on Limited Domestic Drivers

The Aussie held firm within a narrow range of 0.6510/0.6544. Local equities struggled as ASX dropped 0.6%, but FX impact remained limited.

 

Key Economic Data Ahead (Sydney Time)

 

General Market

Wall Street

U.S. equities extended gains:

  • Nasdaq +0.8%
  • S&P 500 +0.5%
  • Dow Jones +0.4%

U.S. 10-year yields fell 6bps to 4.34%, and brent crude stayed near $70/bbl.

Asia-Pacific

Asian markets ended mixed:

  • Nikkei +0.3%
  • Hang Seng -1.1%
  • Shenzhen -0.1%
  • ASX -0.6%

Sectoral weakness in materials and real estate weighed on Aussie stocks.

Europe

European bourses started firm:

  • CAC, DAX, Stoxx +0.3%
  • FTSE +0.1%

Eurozone data light. EUR and GBP moved higher into close. German 10-year yields rose to 4.39%.

 

Headlines to Watch

  • FOMC Minutes Show Split on Policy DirectionThe latest Fed minutes reflect a divided view on whether to cut again soon. Officials cited slower job growth and sticky inflation.
  • Trump Adds More Tariffs, Focus on EU and LatAmU.S. President Trump expanded tariff coverage to seven more nations, with rates between 20–30%. The move adds pressure to already fragile global trade conditions.
  • Quiet Day Ahead With Few Market-Moving EventsWith a sparse economic calendar, traders will focus on Fed speeches for any fresh policy signals. FOMC voter Musalem’s remarks could guide expectations.

Mid-market rates.

Currency PairMid-market Rate
AUD/USD0.6537
AUD/NZD1.0894
AUD/JPY95.46
AUD/CNY4.6934
AUD/EUR0.5568
AUD/GBP0.4807
AUD/HKD5.1323

 

Disclaimer:

The market update provided by Corporate Alliance FX (CAFX) is for reference only and does not constitute a bid, levy, offer or invitation to offer for the financial product, the basis for any contract or commitment, a recommendation for the purchase or sale of any investment instruments, financial, legal, tax, investment advice, investment advice or other opinions. It will not be legally liable for any consequences or losses caused by the information or content involved.
Corporate Alliance Group Pty Ltd T/A Corporate Alliance FX (CAFX) (ABN 58 167 119 226, AFSL 523351) (i.e. CAFX), CAFX independently holds the Australian Financial Services licence no. 523351 (AFSL), so CAFX is regulated by the Australian Securities and Investment Commission (ASIC) and, and although ASIC is a strictly regulatory body, it does not endorse a specific financial product. ASIC’s regulation of CAFX applies to all services under the financial licence held by CAFX, including the issuance of foreign exchange settlement, foreign exchange payments, foreign exchange risk control, hedging, market making and providing financial advice.3

Facebook
LinkedIn

Corporate Alliance Group Pty Ltd (ABN: 58 167 119 226) trading as Corporate Alliance FX (“CAFX”) holds an Australian Financial Services License (AFSL No: 523351) issued by the Australian Securities and Investments Commission, and is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) as an independent remittance dealer (Registration No – IND100697688-001).

Corporate Alliance Payments Pty Ltd (ABN: 66 650 245 382) trading as CAPAY is an ASIC AR 001295931 of Corporate Alliance Group Pty Ltd (ABN 58 167 119 226), and is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) as a remittance dealer (Registration No IND100792739-001), and a Remittance Network Provider (RNP) (Registration No. RNP100792739-001).

Corporate Alliance Pty Ltd (ABN: 51 644 169 148) trading as Corporate Alliance Finance (“CAFIN”) is an ASIC AR 001297733 of Corporate Alliance Group Pty Ltd (ABN 58 167 119 226), which holds an Australian Financial Services Licence issued by the Australian Securities and Investments Commission (AFSL No: 523351).

DISCLAIMER:  The information contained on this website and in any accompanying documents or communications is provided for general information purposes only. It is not intended as a solicitation for funds, nor should it be considered a recommendation or advice to trade.  The contents do not consider your personal objectives, financial situation, or individual needs. You should seek independent financial advice before making any investment or trading decisions.

Corporate Alliance Group, along with its associated or related entities, accepts no liability for any loss or damage—whether direct, indirect, consequential, or otherwise—arising from any action taken or not taken based on the information provided on or through this website.

©2025. Corporate Alliance Group. All Rights Reserved.

Security & Regulation
Legal & Compliance
Privacy Policy
Support SLA