Global markets gain after new US peace deal
Global markets jumped overnight as Iran considered a new peace plan that could bring an end to the ten‑week conflict in the Middle East.
Crude oil tumbled, with both WTI and Brent falling more than 7.0% on the session. US equities pushed higher, with the S&P 500 up 1.5% and the tech‑heavy Nasdaq gaining 2.0%.
The greenback softened, with the USD index falling to its lowest level in two months.
AUD/USD jumped 0.8%, hitting its highest level since August 2022. The euro and pound recorded more modest gains.
In Asia, USD/JPY plunged 1.0%, slipping below the lows seen after last week’s Bank of Japan intervention. USD/SGD fell 0.6%, while USD/CNH eased 0.2%.
Kiwi surges after stronger job numbers
New Zealand’s unemployment rate fell to 5.3% in the first quarter, beating forecasts for a steady 5.4%. The decline was driven by fewer people actively seeking work, which pushed the participation rate down to 70.4%, slightly below expectations of 70.5%.
The New Zealand dollar strengthened on the news, finishing as the top‑performing G10 currency overnight. NZD/USD jumped 1.2%, reaching a two‑month high.
On the upside, the next key test sits near 0.6000. On the downside, initial support is at the 21‑day EMA of 0.5874, followed by the 50‑day EMA at 0.5867.
The kiwi also outperformed elsewhere, with NZD/EUR and NZD/GBP both trading near two‑month highs.
China talks put yuan in the spotlight
US President Donald Trump said he will raise the Iran war when he meets Chinese President Xi Jinping at their summit next week. Trump played down tensions, saying China has been “very respectful”, while noting Beijing’s heavy reliance on Iranian oil.
Separately, Secretary of State Marco Rubio said Taiwan will also feature in the discussions. He noted that neither side wants to destabilise the Indo‑Pacific region, adding that both countries understand each other’s positions.
In FX markets, USD/CNH slipped to its lowest level in more than a week. The pair now sits around 0.3% above its recent low of 6.8059, last seen on 14 April.
The next key resistance is at the 21‑day EMA of 6.8376, followed by the 50‑day EMA at 6.8636.
AUD/CNH jumped, with the pair hitting a five‑year high.
Aussie highest in four year
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 4 – 9 May
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
