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Markets Rise on Improving Risk Sentiment; Oil Volatility and RBA in Focus Description:

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Forex Market 

USD Weakens as Risk Sentiment Improves Ahead of RBA Decision
The U.S. dollar weakened broadly overnight as risk sentiment improved, with investors responding to geopolitical developments around the Strait of Hormuz. Global equity markets moved higher while U.S. Treasury yields declined, supporting gains in risk-sensitive currencies.
The Australian dollar strengthened and traded near the upper end of its recent range, supported by the softer USD and stronger market appetite for risk ahead of the Reserve Bank of Australia’s policy decision. The euro and British pound also gained momentum as the dollar retreated.
Meanwhile, the Japanese yen strengthened against the U.S. dollar as Treasury yields eased. The New Zealand dollar moved higher alongside other risk-linked currencies, while the Canadian dollar advanced despite softer domestic inflation data. The U.S. Dollar Index remained under pressure during the session.
Looking ahead, demand for the Australian dollar is expected on dips, while resistance may emerge at higher levels as markets monitor the outcome of the RBA policy decision and developments in global energy markets.

General Market

Wall Street

  • Dow Jones: +0.9% | 46,983
  • S&P 500: +1.1% | 6,704
  • Nasdaq: +1.3% | 22,382
  • VIX: -12.5% | 23.80

Asia-Pacific

  • ASX 200: -0.4% | 8,583
  • Shanghai Composite: -0.3% | 4,085
  • Nikkei: -0.1% | 53,751

Europe

  • FTSE 100: +0.6% | 10,318
  • DAX: +0.5% | 23,564
  • CAC 40: +0.3% | 7,936

 

Headlines to Watch

United States

  • President Trump suggested the Fed should consider a special meeting to cut rates.
  • The U.S. conducted missile strikes on Iran’s Kharg Island oil hub, increasing geopolitical tension.
  • The White House urged NATO allies to help reopen the Strait of Hormuz.

Global / Asia

  • Possible delay in the Trump–Xi meeting depending on geopolitical developments.
  • China released stronger-than-expected industrial production and retail sales data.

Australia

  • Markets focus on the RBA monetary policy decision, with expectations leaning toward rates holding at 3.85%, though some markets still price the risk of a hike due to higher oil prices.
Currency Pair Mid-market Rate
AUD/USD 0.7067
AUD/NZD 1.2075
AUD/JPY 112.50
AUD/CNY 4.8717
AUD/EUR 0.6146
AUD/GBP 0.5308
AUD/HKD 5.5343

 

 

 

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