Aussie leads gains, nears four-year highs
The Australian dollar led gains overnight ahead of a sequence of major central bank decisions.
The Bank of Japan meets today, while the Bank of Canada meets overnight.
These gains see AUD/USD rank as the second‑best performing G10 FX pair year‑to‑date.
AUD/USD is now nearing its recent high at 0.7222, last reached on 17 April.
On the downside, initial support is seen near the 21‑day EMA at 0.7096, followed by the 50‑day EMA around 0.7036.
On the upside, the next key hurdle is the round number at 0.7200.
AUD/EUR has climbed to a one‑month high.
Fed drama fades
Kevin Warsh’s path to lead the Federal Reserve is clearing after Senator Thom Tillis dropped his opposition, removing a key obstacle to the nomination.
Tillis said the Department of Justice’s decision to end its criminal probe into Jerome Powell protects the Fed’s independence. He added he had been assured the matter is “completely and fully settled”, even though the Fed’s inspector general is still reviewing cost overruns linked to building renovations.
Speaking on NBC’s Meet the Press, Tillis said he is ready to move ahead. This opens the door for a fast Senate confirmation vote on April 29, just days before Powell’s term as chair ends on May 15.
Powell’s term as a Fed governor runs until 2028. On Friday, US Attorney Jeanine Pirro confirmed the investigation had been dropped.
China profit jump lifts risk mood
China’s industrial profits jumped 15.8% in March from a year earlier, slightly faster than the 15.2% pace seen in the first two months of the year. This came despite pressure on factory margins from higher global oil prices.
Stronger wholesale prices appear to have offset rising costs linked to the war. After three and a half years of declines, wholesale prices finally turned positive in March, helping boost earnings for raw material producers such as mining firms.
USD/CNH has risen around 0.3% from its recent low of 6.8059, last seen on 14 April.
The next key resistance sits at the 21‑day EMA at 6.8430, followed by the 50‑day EMA at 6.8736.
AUD/CNH has moved above 4.9000 and is trading near five‑year highs.
AUD/EUR, AUD/CNH at highs
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 27 April – 1 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.
