USD Weakens as Risk Sentiment Strengthens; AUD Leads Gains

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Forex Market 

USD Weakens as Global Risk Appetite Improves

The U.S. dollar weakened broadly toward the end of the week as risk sentiment improved significantly across global markets. A strong rebound in U.S. equities, declining U.S. inflation expectations, and a sharp rally in commodities supported higher-beta currencies. The Australian dollar outperformed, with AUD/USD closing the week near session highs after experiencing notable intraday volatility. The euro and British pound also advanced, both reaching fresh daily highs against the U.S. dollar.
The AUD/USD pair traded within a wide range between 0.6897 and 0.7025, before settling near 0.7025 into the New York close. Buying interest remains evident ahead of the 0.6850 level, while meaningful selling interest is positioned above 0.7100.

 

 

General Market

Wall Street
  • Dow Jones +2.5% → 50,116
  • S&P 500 +2.0% → 6,932
  • Nasdaq +2.2% → 23,031
  • VIX -18.4% → 17.76
Asia-Pacific
  • Nikkei +0.8% → 54,254
  • Shanghai Comp -0.3% → 4,066
  • ASX 200 -2.0% → 8,709
Europe
  • DAX +0.9% → 24,721
  • FTSE +0.6% → 10,370
  • CAC +0.4% → 8,274

 

Headlines to Watch

  • Australia
    AUD/USD traded back above 0.70 as broad USD weakness offset local yield moves, with buying interest holding ahead of 0.6850.
  • United States
    Wall St. staged a strong rebound as easing University of Michigan inflation expectations weighed on the USD, despite firmer Treasury yields. Markets continue to fade the dollar as risk sentiment improves.
  • Asia
    Asian equities finished mixed after an early-session risk sell-off reversed, with volatility across commodities and crypto failing to derail broader sentiment.
  • Europe
    European equities opened modestly higher, while EUR and GBP traded near session highs as USD losses extended into the London lunch.
  • Global Markets
    Precious metals surged sharply on the day, with gold and silver posting outsized gains, while equities closed strongly and volatility retreated as the VIX fell sharply.
Currency PairMid-market Rate
AUD/USD0.7030
AUD/NZD1.1668
AUD/JPY110.62
AUD/CNY4.8636
AUD/EUR0.5950
AUD/GBP0.5168
AUD/HKD5.4948

 

 

 

 

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