USD Softens as Risk Appetite Builds, AUD Leads FX Gains

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Forex Market 

USD Slides as Risk Appetite Lifts Major and High-Beta Currencies
The USD remained under pressure as global risk sentiment improved, with strong equity markets, firm commodity prices, and softer U.S. data expectations weighing on the greenback throughout the session. AUD/USD traded in a buoyant 0.7006–0.7099 range and finished near the top of the band, supported by solid risk appetite, while EUR/USD extended gains to 1.1926 as the USD index slid around 0.7%. GBP/USD also pushed higher to 1.3691, tracking broad USD weakness, while USD/JPY tumbled to 156.21 following softer Japanese wage data that raised doubts over the sustainability of inflation momentum. Overall, the DXY fell to 96.84, reflecting broad-based USD softness.

 

General Market

Wall Street

  • Nasdaq: +1.1% | 23,283
  • S&P 500: +0.5% | 6,969
  • Dow Jones: +0.1% | 50,165
  • VIX: -4.0% | 17.05
  • US 10Y Yield: steady at 4.20%

Asia-Pacific

  • Nikkei: +3.9% | 56,364
  • Shanghai Comp: +1.4% | 4,123
  • ASX 200: +1.9% | 8,870

Europe

  • DAX: +1.2% | 25,015
  • CAC: +0.6% | 8,323
  • FTSE 100: +0.2% | 10,386

Headlines to Watch

  • USD in focus as markets price in softer U.S. labour data following comments flagging weaker upcoming NFP prints.
  • U.S. Retail Sales (Dec) expected to moderate, a key test of consumer resilience and near-term Fed expectations.
  • AUD outperforms on strong global risk sentiment, supported by equity strength and rising commodity prices.
  • USD/JPY slides after softer Japanese wage data raises questions over the sustainability of inflation and BOJ tightening.
  • Commodities surge, with gold holding above $5,000 and silver sharply higher, reinforcing the risk-on tone.
Currency PairMid-market Rate
AUD/USD0.7084
AUD/NZD1.1705
AUD/JPY110.58
AUD/CNY4.9096
AUD/EUR0.5950
AUD/GBP0.5177
AUD/HKD5.5366

 

 

 

 

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