USD continues rebound from four-year lows across APAC
The US dollar was higher on Wednesday, extending the rebound from the four‑year lows seen last week, as US tech stocks were hit further.
The tech‑focused Nasdaq fell for the fourth time in five sessions, with an ongoing shift away from technology firms shaping trading so far in 2026.
Overnight, the S&P 500 fell 0.5% while the Nasdaq lost 1.5%. The Nasdaq is now down 4.5% over the past five sessions.
After the market closed, sentiment was further weighed down by a larger‑than‑expected AI spending bill from Alphabet, the owner of Google.
Across Asia, USD/CNH gained 0.1% while USD/SGD climbed 0.2%.
The stronger USD saw AUD/USD fall 0.3%, while NZD/USD dropped 0.7% following yesterday’s labour‑market data.
New Zealand jobless rate jumps to decade high
New Zealand’s unemployment rate rose to 5.4% in the fourth quarter, the highest in ten years, up from 5.3% previously.
Employment increased 0.5% from the prior quarter—its first rise since mid‑2024—but hiring growth failed to keep pace with the expanding workforce, pushing the jobless rate higher.
The data strengthens the case for the Reserve Bank of New Zealand to keep interest rates on hold.
NZD/USD is currently hovering near the psychological 0.600 level, with risks tilted to the downside as momentum—as measured by the RSI—softens.
Key support sits at the 21‑day EMA of 0.5929, followed by the 50‑day EMA at 0.5852.
AUD/JPY highest since 1990 as Japan confidence slips
Japan’s services sector expanded at its fastest pace in almost a year, with the S&P Global Services PMI rising to 53.7 in January from 51.6. Stronger new orders, improved foreign demand, and rising backlogs supported job creation.
Input costs eased to their lowest level in nearly two years, but firms lifted selling prices at the fastest pace in seven months.
Despite the stronger activity, business confidence fell to a six‑month low, weighed down by global uncertainty, weaker tourism, and persistent labour shortages.
USD/JPY pushed to a one‑week high. Resistance stands at 159.45, the January 14 peak, while support sits at 154.27 at the 100‑day moving average.
AUD/JPY outperformed, climbing to its highest level since 1990, while NZD/JPY reached an 18‑month high.
USD extends gains
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 3 – 7 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.
