Global markets shake off blockade worries
The Australian and New Zealand dollars were higher overnight as global markets gained despite the implementation of a US blockade of the Strait of Hormuz at midnight AEST.
Instead, markets focused on news that the US and Iran might agree to further talks, boosting hopes for a resolution to the seven-week long conflict.
The AUD/USD gained 0.4% with the pair now trading back at four-week highs.
The NZD/USD climbed 0.5% as it reached three-week highs.
The greenback was lower in most other markets with the Swiss franc and Scandinavian currencies best.
JPY tumbles as BoJ steers away from hike
The Japanese yen weakened after Bank of Japan governor Kazuo Ueda said the Iran war could cause the BoJ to delay any rate hike.
The USD/JPY bucked the global trend of a weaker greenback with the US dollar higher as the pair gained 0.1%.
The pair is now lingering toward 160.00, a closely watched level that could see a break higher if tensions tied to the US‑Iran conflict persist.
On the downside, the next key support lies at 21-day EMA of 159.0067, followed by 50-day EMA of 157.9969.
USD buyers may look to take advantage at those key support levels.
Elsewhere, yen weakness remains stark. SGD/JPY climbed to a fresh all‑time high, while AUD/JPY sits just 1% below its strongest level in 36 years, highlighting how sharply the yen has fallen against its Asia-Pacific peers.
Geopolitics test the USD/CNH relationship
US Trade Representative Jamieson Greer said on Friday that Washington’s relationship with Beijing could become more difficult if China’s links with Iran harm US interests. His comments follow warnings from President Trump, who has threatened steep tariffs on countries supplying arms to Tehran.
Over the weekend, a social media account linked to China’s state broadcaster CCTV said Beijing did not play a decisive role in negotiating the recent two-week ceasefire involving Iran, stressing that China has remained “impartial” throughout the conflict.
USD/CNH is trading about 0.2% above its recent low near 6.8200, last seen on April 8th. The next key resistance lies at 21-day EMA of 6.8712, followed by 50-day EMA of 6.8980. With USD/CNH near the lower edge of its recent range and flagged as oversold by Bollinger bands, some USD buyers may see room for a rebound if geopolitical tensions stay in focus.
Aussie, kiwi rebound on deal hopes
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 6 – 11 April
All times AEST
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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.
