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USD Slides as Risk Appetite Improves; Equities Rally on Strong Data and Central Bank Signals

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Forex Market 

USD Slides as Risk Appetite Improves; AUD Breaks Above 0.7200

The U.S. dollar weakened broadly overnight as improving risk sentiment and softer U.S. data weighed on demand for safe-haven assets. Strong equity performance and falling Treasury yields added pressure on the greenback, while commodity-linked currencies outperformed. The Australian dollar pushed above the 0.7200 level, supported by improved sentiment and steady demand.

AUD/USD traded higher through the New York session, reaching fresh highs, while NZD/USD also moved higher. EUR/USD advanced into the mid-range levels and GBP/USD extended gains further. Meanwhile, USD/JPY saw heightened volatility following confirmed Japanese intervention, dropping sharply from recent highs before stabilizing.

General Market

Wall Street
  • Dow Jones: +1.6% to 49,652
  • S&P 500: +1.0% to 7,209
  • Nasdaq: +0.9% to 24,892
Asia-Pacific
  • ASX 200: -0.2% to 8,666
  • Nikkei: -1.1% to 59,285
  • Shanghai Composite: +0.1% to 4,112
Europe
  • FTSE: +1.6% to 10,379
  • DAX: +1.4% to 24,292
  • CAC: +0.5% to 8,115

 

Headlines to Watch

United States

  • ISM Manufacturing Index expected to ease slightly to 52.2, remaining in expansion territory
  • Mixed U.S. data: softer Chicago PMI and Leading Index vs strong labor market and spending data
  • Treasury yields declined, supporting equities and pressuring USD

Europe

  • European Central Bank held rates steady; maintained flexibility amid inflation risks
  • ECB President Lagarde signaled a more hawkish tone, highlighting upside inflation risks
  • Bank of England kept rates unchanged at 3.75% with an 8–1 vote split

Asia-Pacific

  • Japan retail sales and industrial production beat expectations, while yields hit multi-decade highs
  • Japanese authorities intervened in FX markets, triggering sharp USD/JPY declines
  • China PMI data showed mixed signals, with manufacturing slightly stronger but services softer
Currency Pair Mid-market Rate
AUD/USD 0.7204
AUD/NZD 1.2194
AUD/JPY 112.92
AUD/CNY 4.9160
AUD/EUR 0.6140
AUD/GBP 0.5295
AUD/HKD 5.6434

 

 

 

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