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Global Markets Rally as USD Softens on Cooling Inflation and Risk Sentiment Boost

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Forex Market 

USD Softens as Risk Sentiment Improves; AUD Holds Firm Above 0.71

USD softened as risk sentiment improved, while AUD held firm above the seventy-one level. Optimism surrounding potential U.S.–Iran negotiations weighed on oil prices and supported equities, contributing to a more positive market tone. At the same time, a weaker-than-expected U.S. PPI print further pressured the greenback, allowing major currencies to strengthen before partially retracing later in the session.
The DXY eased off its highs, while AUD/USD traded within its range and settled above the seventy-one level. EUR/USD pushed higher before easing, and GBP/USD also reached session highs. USD/JPY declined amid broad USD weakness, while NZD/USD moved higher above the fifty-nine level. Meanwhile, USD/CAD trended lower during the session.
The move was primarily driven by softer U.S. inflation data, alongside declining U.S. yields. Improved global risk appetite and ongoing geopolitical developments tied to U.S.–Iran headlines also played a key role in shaping currency movements.

General Market

Wall Street

  • Dow Jones +0.7% → 48,536
  • S&P 500 +1.2% → 6,967
  • Nasdaq +2.0% → 23,639
  • VIX -4.0% → 18.36

Asia-Pacific

  • Nikkei +2.4% → 57,877
  • Shanghai Composite +1.0% → 4,027
  • ASX 200 +0.5% → 8,971

Europe

  • DAX +1.3% → 24,044
  • CAC 40 +1.1% → 8,328
  • FTSE 100 +0.2% → 10,609

 

Headlines to Watch

United States
  • Focus on the Federal Reserve Beige Book for insights into economic conditions and business sentiment
  • Empire Manufacturing Index to provide an early read on U.S. industrial activity
  • Remarks from Fed Governor Bowman for further policy direction signals
Europe
  • Industrial Production data to reflect the strength of the manufacturing sector
  • Speeches from ECB’s Villeroy and Escriva, alongside SNB’s Schlegel, for broader central bank outlook
United Kingdom
  • BOE Governor Andrew Bailey speaking in Washington, with markets watching for policy guidance cues
Asia-Pacific
  • Japan Core Machine Orders to indicate business investment trends
  • RBA Deputy Governor Hauser panel participation, reinforcing the RBA’s hawkish stance
Currency Pair Mid-market Rate
AUD/USD 0.7130
AUD/NZD 1.2076
AUD/JPY 113.24
AUD/CNY 4.8586
AUD/EUR 0.6043
AUD/GBP 0.5251
AUD/HKD 5.5848

 

 

 

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