AUD/USD and NZD/USD Surges on Chinese Stimulus, USD/JPY Rebounds Toward $150

AUD/USD Remains Positive on Chinese Stimulus Measures

China’s fresh monetary stimulus has strengthened the Australian Dollar, pushing AUD/USD to 0.6380. The move has improved investor sentiment, increasing demand for risk-sensitive assets. Since Australia relies heavily on trade with China, the stimulus measures have raised expectations of stronger demand for Australian exports. Additionally, the weaker US Dollar Index, which remains near 103.30 due to falling Treasury yields and trade tensions, has further supported AUD/USD’s upside momentum.

Investors are now watching key events that could impact AUD/USD’s direction. On Wednesday, the Federal Reserve’s policy decision is expected to keep interest rates steady at 4.25%-4.50%. Traders will closely analyze the Fed’s statement for hints about future rate cuts. A dovish tone could weaken the US Dollar further, giving AUD/USD more room to rise. Meanwhile, Australia’s employment data for February is set for release on March 20. This data will influence the expectations of the Reserve Bank of Australia’s (RBA) monetary policy. A strong labor market report could boost the Australian Dollar by reinforcing economic confidence.

Morever, the trade tensions remain a risk factor for AUD/USD. Ongoing uncertainties surrounding Washington’s trade policies have kept investors cautious. If the US imposes further tariffs on Chinese imports, Australia’s trade relationship with China could face challenges. Any escalation in trade conflicts might weaken risk sentiment and pressure AUD/USD. However, for now, China’s stimulus and expectations of steady Fed policy are driving bullish momentum in the pair.

Market Optimism Drives USD/JPY Higher Amid US-Russia Talks

USD/JPY rebounded from the support zone and moved higher toward the $150 price zone as the Japanese Yen weakened. A positive market mood supported risk assets, reducing demand for the safe-haven Yen. Optimism over US-Russia peace talks boosted investor confidence, adding to the Yen’s decline. Meanwhile, the US Dollar underperformed against most major currencies, reflecting market caution ahead of key economic events.

Several factors could impact USD/JPY this week. The Bank of Japan’s (BoJ) monetary policy and the Federal Reserve’s interest rate decisions will be the key events for this week. The US tariff agenda remains a concern, as fears of slower economic growth weigh on investor sentiment. Additionally, the Flash Michigan Consumer Sentiment Index fell sharply to 57.9 in March from 64.7 in February, as shown in the chart below. This drop in consumer sentiments indicates weakening consumer confidence. These mixed signals could lead to increased volatility in USD/JPY.

AUD/USD Technical Analysis – Rounding Bottom

The 4-hour chart for AUD/USD shows strong bullish momentum within a symmetrical broadening wedge pattern. The rebounding bottoms are observed around the $0.62 and $0.6270 levels and the price gains bullish momentum after forming rounding bottom. This bullish price structure indicates a potential move toward $0.6440. The strong surge in gold (XAU) prices and bearish pressure on the US Dollar Index also support a rally in the Australian dollar.

NZD/USD Technical Analysis – Broadening Wedge Pattern

The 4-hour chart for NZD/USD shows that the price has broken out of the symmetrical broadening wedge pattern and is moving higher. The price has also formed a rounding bottom pattern, similar to AUD/USD. A break above $0.58 has opened the door for further upside. However, the RSI indicates overbought conditions, suggesting a potential correction before the next move is higher.

USD/JPY Technical Analysis – Rebound