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USD Firms as Markets React to Mixed Data and Rising Tensions

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Forex Market 

USD Strength Persists as Risk Sentiment Weakens and Geopolitical Tensions Rise
The U.S. dollar strengthened against major currencies as risk sentiment softened following weaker global equity markets and rising geopolitical tensions in the Middle East. U.S. economic data delivered mixed signals, with Core PCE inflation largely meeting expectations while durable goods orders disappointed, reinforcing cautious market expectations regarding the Federal Reserve’s policy outlook.
Energy markets moved higher as oil prices surged on concerns over potential supply disruptions after Iran threatened to restrict access to the Strait of Hormuz, a key global oil shipping route. While the move supported commodity prices, it added pressure to global equities and contributed to a broader risk-off tone in markets.
Currency markets reflected the stronger U.S. dollar, with the Australian dollar trading within a narrow range against the U.S. dollar and closing near session lows. The euro and British pound also weakened during the session, while the Japanese yen saw the U.S. dollar trade higher. The New Zealand dollar moved lower alongside broader risk-sensitive currencies, while the Canadian dollar weakened significantly after disappointing employment data, pushing USD/CAD higher. Meanwhile, the U.S. Dollar Index strengthened during the session.
The Australian dollar remained confined within its recent trading range, with market demand expected to emerge near the lower support area while resistance is likely to appear ahead of the upper range as traders monitor shifts in global risk sentiment and upcoming economic data.

General Market

Wall Street

  • Dow Jones: -0.3% | 46,558
  • S&P 500: -0.6% | 6,632
  • Nasdaq: -0.9% | 22,105
  • VIX: 27.19

Asia-Pacific

  • ASX 200: -0.1% | 8,617
  • Nikkei 225: -1.2% | 53,820
  • Shanghai Composite: -0.8% | 4,095

Europe

  • FTSE 100: -0.4% | 10,261
  • DAX: -0.6% | 23,447
  • CAC 40: -0.9% | 7,912

 

 

Headlines to Watch

United States

  • Core PCE inflation rose 0.3% MoM and 2.8% YoY, slightly below expectations.
  • Personal spending increased 0.4%, showing resilient consumer activity.
  • Durable goods orders were flat in January, missing expectations of a 1.1% increase.
  • University of Michigan sentiment fell to 55.5, though inflation expectations eased.

Canada

  • Canada lost 83.9k jobs in February, far worse than the expected +10k increase.
  • The unemployment rate rose to 6.7%, adding pressure on the Bank of Canada ahead of the April policy meeting.

China

  • Markets are closely watching China’s major activity data for Jan–Feb, including retail sales and industrial production.
  • Retail sales are expected to rise 2.1% YoY, while industrial production may grow around 5% YoY.

Geopolitics / Global

  • Iran threatened to keep the Strait of Hormuz restricted, pushing oil prices higher.
  • NATO intercepted a third missile targeting Turkey, adding to global geopolitical tensions.
  • Reports indicate the U.S. may deploy additional military assets to the Middle East.
Currency Pair Mid-market Rate
AUD/USD 0.6996
AUD/NZD 1.2079
AUD/JPY 111.63
AUD/CNY 4.8135
AUD/EUR 0.6121
AUD/GBP 0.5284
AUD/HKD 5.4816

 

 

 

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