The Japanese Yen (JPY) edges higher against its American counterpart during the Asian session on Tuesday and for now, seems to have stalled the previous day's retracement slide from over a one-week high.
What started as a textbook red screen risk-off session turned into a classic short covering late-day rescue, but don’t be fooled—the macro minefield ahead remains firmly intact.
The AUD/USD pair plunged to its lowest levels in over three weeks during Monday’s North American session, slipping toward the 0.6230 area as the Australian Dollar (AUD) underperformed across the board.
The Canadian Dollar (CAD) headed lower on Monday, kicking off the new trading week by shedding half of a percent against the US Dollar (USD) as the Trump administration’s April 2 deadline for sweeping tariffs looms ahead.
The ongoing escalation in trade tension has resulted in more downside pressure on risk assets, with US equities continuing to get hit hard as a consequence.
The Japanese yen is rallying on Monday, boosted by safe-haven flows, while gold pushed to fresh record highs amid the uncertainties surrounding Trump’s trade tariffs.
The Australian dollar remains range-bound near the 50-day EMA, with traders watching Chinese demand and global trade tensions for a potential breakout.
The Australian dollar was the strongest major currency last week, while the Japanese yen was the weakest, although the numbers were practically negligible. Volatility decreased over this period, and the coming week will likely see more volatility.
