US tech sell-off drives greenback higher
The AUD/USD fell from three-year highs on Friday as the sell-off in US technology shares continued.
The US tech-focused Nasdaq fell 0.2 percent on Friday, is down 6.0 percent from its 28 January peak, and is now trading at three-month lows. Concerns about the heavy capital expenditure required to support AI investment have driven recent losses.
The AUD/USD fell 0.2 percent on Friday, marking its second straight day of declines after reversing from three-year highs.
The NZD/USD was steady.
In Asia, the US dollar was also mostly higher on Friday. The USD/SGD and USD/CNH each gained 0.1 percent.
Japan signals slow-burn shift at BoJ
Japan looks set to keep nudging policy back toward normal. Etsuro Honda, an adviser to Prime Minister Sanae Takaichi, told Reuters that Japan has moved past deflation and no longer needs to favour reflation-focused candidates for upcoming Bank of Japan board seats.
He said the BoJ could lift rates later this year as prices and yields rise, but a March move looks unlikely while officials assess December’s adjustment. His remarks suggest little political pushback against Governor Kazuo Ueda’s steady, data-driven approach.
USDJPY has slipped 4 percent from its 14 January peak of 159.45.
Key levels traders are watching include the 100‑day average at 154.34 and the 21‑day average at 155.27.
RBNZ decision anchors a heavy FX data week
The week beginning 16 February opens with a focus on Asia, as Japan’s December industrial production and January CPI (headline and core) will offer fresh insight into the Bank of Japan’s policy outlook. Meanwhile, the Reserve Bank of New Zealand’s rate decision on Wednesday is the week’s main monetary policy event.
Australia’s Q4 wage price index and January labor market data (employment change and unemployment rate) will be closely watched for signs of wage-driven inflation and labor market resilience. In the US, attention turns to the FOMC minutes on Thursday, which may provide more clarity on the Fed’s rate path, alongside January industrial production and durable goods orders. The US calendar also includes weekly jobless claims and the December trade balance, offering a broader read on economic momentum.
Friday brings a wave of flash PMI releases across major economies. Australia, Japan, the Eurozone, Germany, France, and the UK will all report preliminary February PMIs, providing a timely snapshot of global growth trends. These readings will be pivotal for FX markets, especially if they highlight divergences in regional momentum.
The week closes with the US PCE price index (December) and the first estimate of Q4 GDP on Saturday. Both will be key for shaping expectations around the Fed’s next moves. Stronger‑than‑expected inflation or growth could support the USD, while softer results may revive rate‑cut expectations.
Overall, FX markets face a data‑heavy week, with central bank decisions, inflation prints, and PMI releases likely to drive volatility and set the tone for G10 currencies.
Kiwi slipping Aussie holds on
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 16 – 21 Feb
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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.
