Global markets pressured as US shares hit
Global markets started the new week on shaky ground with worries around US trade policy driving nerves after last week’s Supreme Court decision ruled against President Trump’s tariff program.
The US’s Dow Jones index fell 1.7%, S&P500 lost 1.0% while the tech-focused Nasdaq lost 1.1%.
In FX markets, the Aussie and kiwi were the hardest hit, with AUD/USD down 0.4% and NZD/USD down 0.3%.
The European markets were mostly steady with EUR/USD flat and GBP/USD up 0.1%.
The USD/JPY, down 0.3%, led USD losses across Asia.
Ausie, kiwi lead losses
Overnight, the AUD/USD failed above 0.7100, with this level continuing to provide major topside resistance.
In the Aussie, momentum indicators like the RSI and MACD also signal the recent rally might be beginning to lose steam.
In other markets, the AUD/EUR paused and reversed above 0.6000, while AUD/GBP is losing momentum above 0.5200.
For the kiwi, the NZD/USD is now down 2.3% from the 29 January high, with last week’s Reserve Bank of New Zealand decision weighing on the pair.
Greenback lower in Asia as Miran trims rate-cut outlook
Fed Governor Miran told Peg Substack Blog he now sees fewer rate cuts ahead, citing a resilient labor market and sticky goods inflation.
Miran expects 100bp of cuts this year, down from 150bp previously.
Markets have pushed the next Fed cut out to July 2026.
In Asia FX, the US dollar was mostly lower over the last 24 hours.
USD/SGD is only 0.7% away from its 28 Jan low of 1.2586. The next resistance sits at the 50-day EMA of 1.2766, followed by the 100-day EMA at 1.2830.
With momentum turning, as seen with a recent reversal higher in momentum studies like the RSI and MACD, USD buyers may find this a timely entry point.
The USD/CNH remains in a clear downtrend with the pair holding above support at the 30-month lows at 6.8810.
Aussie lower after tariff-led sell-off
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 23 — 28 Feb
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.
