USD Retreats as Risk Appetite Improves Amid Easing Geopolitical Tensions and Rising Oil Prices

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Forex Market 

USD Softens as Risk Sentiment Improves; AUD Leads Gains
The USD weakened through the New York session despite mixed U.S. economic data, as improving geopolitical sentiment lifted risk-sensitive currencies.
AUD/USD traded within a tight range and closed near session highs, supported by strong demand above the key support level. Similarly, NZD/USD and EUR/USD moved higher, while USD/JPY extended its rally toward multi-decade highs.
Across the majors, the Australian dollar led gains, followed by strength in the euro, British pound, and New Zealand dollar, while USD/CAD declined, reflecting broader USD weakness.
This softer USD tone came despite U.S. data largely meeting expectations, with Core PCE in line with forecasts, alongside weaker Personal Income and Spending figures and slightly downward revisions to GDP.

General Market

Wall Street

  • Dow Jones: +0.6% (48,186)
  • S&P 500: +0.5% (6,825)
  • Nasdaq: +0.8% (22,822)
  • VIX: -7.4% (19.49)

Asia-Pacific

  • ASX 200: +0.2% (8,973)
  • Nikkei: -0.7% (55,895)
  • Shanghai Comp: -0.7% (3,966)

Europe

  • FTSE: -0.1% (10,603)
  • DAX: -1.1% (23,807)
  • CAC: -0.2% (8,246)

 

Headlines to Watch

United States

  • U.S. CPI expected to rise sharply due to higher gasoline prices
  • Inflation surprise could shift Fed rate expectations

China

  • PPI expected to turn positive for the first time since 2022
  • Commodity price surge supporting inflation outlook

Canada

  • Labour market data in focus after sharp job losses in February
  • Unemployment trends to guide rate expectations

Global / Geopolitics

  • Ongoing tensions in the Middle East
  • Developments around Iran, Israel, and Lebanon remain key drivers
Currency Pair Mid-market Rate
AUD/USD 0.7075
AUD/NZD 1.2092
AUD/JPY 112.56
AUD/CNY 4.8373
AUD/EUR 0.6051
AUD/GBP 0.5268
AUD/HKD 5.5413

 

 

 

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