Australia’s Consumer Price Index (CPI) rose 0.9% QoQ in the first quarter (Q1) of 2025, compared with the 0.2% increase seen in the fourth quarter, according to the latest data published by the Australian Bureau of Statistics (ABS) on Wednesday.
The AUD/NZD has experienced some downward pressure, hovering near the 1.07 zone on Tuesday. Despite mixed signals from some momentum indicators, the longer-term technical picture appears to favor the bears, with several moving averages reinforcing this sentiment.
The AUD/USD pair is struggling near the 0.6400 level as trade policy uncertainty continues to impact sentiment. Investors are awaiting critical data this week, including the US Nonfarm Payrolls (NFP) and GDP figures, which could influence the Federal Reserve’s (Fed) stance on interest rates.
The renewed buying pressure prompted the Greenback to leave behind Monday’s pessimism and chart decent gains on Tuesday, always on the back of mitigating US-China trade concerns and rising prudence ahead of key US data releases later in the week.
The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, is showing muted gains on Tuesday after soft labor market and consumer sentiment data raised expectations for policy easing.
The Dow Jones Industrial Average (DJIA) surged over 300 points or 0.80% on Tuesday as softer-than-expected United States (US) economic data suggested the need for lower interest rates, as witnessed by the fall of US Treasury yields.
Goldman Sachs revises its USDCAD forecasts lower due to robust Canadian economic data and a supportive fiscal policy, expecting the Canadian dollar to outperform the U.S. dollar through 2025.
The EUR/CAD pair was seen trading around the 1.5800 zone after the European session on Tuesday, showing little movement on the day after a slight decline. Despite the minor dip, the overall technical setup stays bullish.
The EUR/USD is flashing a bullish tone on Tuesday’s session after the European close, even as the pair slightly retraced from earlier highs and now trades near the mid-1.13 to low-1.14 area. Despite a modest dip during the session, broader technical signals continue to suggest upside potential.
The Pound Sterling (GBP) depreciates against the US Dollar (USD) and falls after testing the year-to-date (YTD) high of 1.3443. However, it fails to remain above 1.34 as it extends its losses. At the time of writing, GBP/USD trades at 1.3379, down 0.29%.
The USD/CAD pair moves slightly higher to near 1.3855 during North American trading hours on Tuesday. The Loonie pair gains as the US Dollar (USD) ticks higher, with investors turning slightly optimistic on de-escalation in the trade war between the United States (US) and China.
Citing two sources familiar with the matter, Reuters reported on Tuesday that China has decided to waive the 125% tariff on ethane imports from the United States imposed earlier this month.
US consumer sentiment extended its decline in April, as the Conference Board’s Consumer Confidence Index fell from 93.9 (revised from 92.9) to 86.0—its weakest reading since April 2020.
The USD/JPY pair ticks higher to near 142.30 during the North American session on Tuesday. The pair edges up as the US Dollar (USD) steadies ahead of the United States (US) JOLTS Job Openings data for March, which will be published at 14:00 GMT.
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