Oil spike the major driver of FX moves
Global markets continue to react to the impact of the US‑Israeli strikes on Iran, with a sharp jump in oil and energy prices reverberating across asset classes.
Brent crude, the benchmark most sensitive to Middle East supply disruptions, jumped 6.7%.
The US dollar was the best performer, with the USD index up 1.0%, supported by its safe‑haven appeal and its role as a major oil producer.
By contrast, currencies of oil‑importing economies such as Europe, the UK and China weakened as markets priced in the economic hit from higher energy costs.
EUR/USD fell 1.1% while GBP/USD lost 0.6%.
AUD/USD saw only small losses after a volatile session, helping the AUD post strong gains against the euro, British pound and Chinese yuan.
The kiwi underperformed, with NZD/USD down 0.9%.
Chinese yuan drops as China blasts US‑Israel strikes
China called the US‑Israeli strikes on Iran “unacceptable,” warning the Middle East could slide into a “dangerous abyss,” according to Xinhua.
Foreign Minister Wang Yi told his Russian counterpart Sergei Lavrov that China rejects the use of force in international relations.
He urged an immediate ceasefire, a rapid return to diplomacy and collective opposition to unilateral actions.
USD/CNH has bounced 0.6% from its February 26 low of 6.8267.
Resistance sits at the 50‑day EMA of 6.9409, followed by the 100‑day EMA of 6.9977.
With the pair still in oversold territory, dollar buyers may see an opportunity to step in.
Elsewhere, USD/SGD jumped 0.7%, hitting the highest level since 6 February.
USD/JPY back at highs as BoJ downplays impact of past hikes
Bank of Japan Deputy Governor Ryozo Himino said recent rate hikes have had only “limited impact” so far.
He noted that underlying inflation is rising steadily, though he cannot yet confirm that the trend has reached 2%.
USD/JPY is now only 1.4% below its January 14 high of 159.45.
Support levels sit at the 50‑day EMA of 155.43 and the 100‑day EMA of 154.52.
Oil moves drive FX
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 2 – 7 March
All times AEDT
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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.
