Aussie back at four‑year highs
FX markets were shaken yesterday after suspected intervention by the Bank of Japan. USD/JPY fell as much as 3.0%, dragging the US dollar sharply lower across Asia.
The Aussie was a clear winner. AUD/USD jumped 1.2%, returning to four‑year highs.
The drop in USD/JPY was the largest in two years and came just hours after Japanese officials issued a “final” warning to currency markets.
Elsewhere, central banks were also in focus. The Bank of England and the European Central Bank both delivered policy decisions overnight.
Sterling rallied after the BoE held rates steady in an 8–1 vote, with some policymakers signalling openness to hikes at the next meeting. GBP/USD gained 0.9%.
The euro rose more modestly as the ECB kept the door open to tighter policy. EUR/USD added 0.4%.
Oil hits new highs as US seeks Hormuz support
Oil prices pushed higher after reports that the US is urging allies to join a new international effort to protect shipping through the Strait of Hormuz.
According to The Wall Street Journal, the initiative — dubbed the “Maritime Freedom Construct” — aims to keep shipping lanes open. US diplomats have been instructed to encourage foreign governments to participate.
The US‑led group would share information, coordinate diplomatically, and use sanctions to safeguard commercial vessels.
The broader US dollar remained under pressure in Asia post-BoJ intervention. USD/SGD slipped back toward 1.2700, while USD/CNH fell 0.2% from three‑week highs.
Kiwi strongest despite confidence slump
New Zealand business confidence took a sharp hit. The latest ANZ survey showed confidence plunging to ‑10.6 in April from +32.5 in March.
The weakness was broad‑based. Firms’ expectations for their own growth almost halved in just one month.
ANZ warned that rising uncertainty is likely to delay major spending and hiring decisions until the outlook becomes clearer.
There was a modest silver lining. While firms expect higher costs, fewer plan to raise prices, and wage expectations have eased. That may reduce pressure to pass inflation through to consumers.
The softer domestic backdrop could add to near‑term volatility in NZD/USD as markets weigh growth risks against central bank expectations.
Even so, the kiwi rode the weaker US dollar higher. NZD/USD rose 1.4%, back near six‑week highs and resistance around 0.5935.
BoJ moves hits greenback
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 27 April – 1 May
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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.
