Markets Retreat as Geopolitical Tensions Rise

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Forex Market 

USD Firms as Risk Sentiment Softens; AUD Holds Steady Ahead of CPI
The U.S. dollar strengthened overnight as global risk sentiment softened, weighed down by weaker equity markets and rising oil prices. Despite mixed economic data, foreign exchange markets remained relatively stable, with major currency pairs trading within tight ranges into the New York close. The Australian dollar held steady after earlier weakness, supported by underlying demand, while the euro and British pound trended lower amid the stronger U.S. dollar. Meanwhile, the Japanese yen saw volatility following the Bank of Japan’s policy decision.
Across the major pairs, the Australian dollar remained steady after earlier declines, the euro and pound weakened to session lows, and the yen fluctuated within a volatile range. The New Zealand dollar also softened, while the Canadian dollar weakened as the U.S. dollar pushed higher overall.

General Market

Wall Street

  • Dow Jones: -0.1% → 49,142
  • S&P 500: -0.4% → 7,142
  • Nasdaq: -0.9% → 24,664

Asia-Pacific

  • Nikkei: -1.0% → 59,917
  • Shanghai Composite: -0.2% → 4,079
  • ASX 200: -0.6% → 8,711

Europe

  • FTSE: +0.1% → 10,333
  • DAX: -0.3% → 24,018
  • CAC: -0.5% → 8,104

 

Headlines to Watch

United States

  • FOMC widely expected to hold rates at 3.50%–3.75%
  • Focus on inflation pressures and oil-driven economic headwinds
  • Consumer confidence beat expectations but had limited market impact
  • Housing data came in softer, signaling cooling momentum

Australia

  • Q1 CPI expected to rise ~1.5% q/q, driven by fuel prices
  • Trimmed mean CPI seen at 1.0% q/q (above RBA forecasts)
  • Data likely to support a potential 25bp rate hike in May

Canada

  • Bank of Canada expected to hold rates at 2.25%
  • ყურადღ focus on inflation trends and oil price impacts
  • Monetary Policy Report to provide updated economic outlook

Japan

  • BoJ held rates at 0.75% in a split 6–3 decision
  • Initial hawkish tone reversed by dovish guidance from Governor Ueda
  • Yen volatility persists amid policy uncertainty
Currency PairMid-market Rate
AUD/USD0.7154
AUD/NZD1.2201
AUD/JPY114.61
AUD/CNY4.9105
AUD/EUR0.6131
AUD/GBP0.5312
AUD/HKD5.6289

 

 

 

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