Aussie jumps 1.0%, NZD outperforms on RBNZ
The Australian dollar climbed sharply after yesterday’s announcement of a two‑week ceasefire between the US and Iran, with AUD/USD reaching its highest level since 20 March.
AUD/USD rose 1.0% on the day.
The New Zealand dollar outperformed, supported by the Reserve Bank of New Zealand holding rates steady and signalling a high bar for future rate increases amid rising oil prices.
RBNZ Governor Anna Breman said the central bank was not close to raising rates at yesterday’s meeting and noted that the bank would have full forecasts available at its May meeting.
NZD/USD gained 1.6%.
USD tumbles despite Fed warning
The US dollar weakened sharply across markets, with the USD index down 0.8%, as investors reacted to the ceasefire news.
Global equity markets surged, with the Dow Jones up 2.9% and the tech‑focused Nasdaq rising 2.8%. WTI crude oil fell 15%, while Brent crude dropped 12%.
The US dollar had strengthened recently on safe‑haven demand, but yesterday’s positive reaction to the Iran developments saw some of that risk premium unwind.
The USD fell despite the release of Federal Reserve minutes this morning, which showed growing concern among policymakers about rising inflation pressures.
Financial markets continue to price only a minimal chance of rate moves this year, with just seven basis points of cuts priced in by year‑end (source: Bloomberg).
USD/SGD falls to one‑month lows
The USD was weaker across Asia, with the most notable move in USD/JPY as the pair reversed sharply after failing to sustain gains near the key resistance level around 160.00.
This reversal could signal a more extended move lower in the USD, both against the Japanese yen and more broadly across Asian currencies.
In USD/SGD, the pair fell 0.6%, dropping to its lowest level since 11 March.
Looking ahead in USD/SGD, key support is seen at 1.2700, followed by 1.2600, while resistance is located at 1.2800.
USD extends post-deal losses
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 6 – 11 April
All times are in EST
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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.
