Markets Rebound as Iran War Headlines Lift Risk Sentiment

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Forex Market 

USD: Risk Sentiment Improves on Iran War Headlines; USD Softens
Risk sentiment improved late in the North American session after comments from Donald Trump suggested the Iran conflict could end sooner than expected. The positive headlines lifted equities and weakened the U.S. dollar as investors shifted back toward risk-sensitive currencies.
The AUD/USD traded within a wide range overnight, finishing near the upper end as the Sydney session approached. Meanwhile, EUR/USD and GBP/USD also strengthened as the U.S. dollar softened through the afternoon session. USD/JPY, NZD/USD, and USD/CAD moved within their respective ranges as currency markets reacted to improving risk sentiment and geopolitical developments.
Market participants are now watching key technical levels, with AUD/USD demand expected near the lower end of the recent range, while selling interest is likely to emerge near the upper resistance levels.

General Market

Wall Street

  • Dow Jones +0.4% | 47,710
  • S&P 500 +1.0% | 6,807
  • Nasdaq +1.2% | 22,662
  • VIX -15.3% | 24.99

Asia-Pacific

  • ASX 200 -2.8% | 8,599
  • Nikkei 225 -5.2% | 52,729
  • Shanghai Composite -0.7% | 4,097

Europe

  • FTSE 100 -0.3% | 10,250
  • DAX -0.8% | 23,409
  • CAC 40 -1.0% | 7,915

 

Headlines to Watch

United States

  • Market reaction to comments from Donald Trump suggesting the Iran conflict could end sooner than expected.
  • U.S. NFIB Small Business Optimism and Existing Home Sales data.

Europe

  • Speeches from European Central Bank officials including Simkus and Muller.

Asia-Pacific

  • China trade data expected to show strong export growth supported by demand for AI-related products.
  • Japan GDP (Q4) release.
  • Australia Westpac Consumer Confidence and NAB Business Confidence reports.
Currency Pair Mid-market Rate
AUD/USD 0.7071
AUD/NZD 1.1926
AUD/JPY 111.63
AUD/CNY 4.8905
AUD/EUR 0.6084
AUD/GBP 0.5265
AUD/HKD 5.5292

 

 

 

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