Asia Roundup:Dollar slips on yen, Asian stocks fall, Gold climbs , Oil falls as Trump's tariffs take effect -April 8th,2025

Market Roundup

•Australia Building Approvals (MoM) (Feb) -0.3%, -0.3%  forecast, 6.9% previous

•Australia Private House Approvals (Feb) 1.0%, 1.0% forecast, 1.4% previous                     

•New Zealand  RBNZ Interest Rate Decision 3.50%, 3.50% forecast, 3.75% previous

•Japan Household Confidence (Mar) 34.1, 34.7 forecast,  34.8 previous    

•Japan Machine Tool Orders (YoY) (Mar)   11.4%  ,3.5% previous

Looking Ahead Economic Data(GMT)

• 09:00 UK 5-Year Treasury Gilt Auction 4.311 previous

Looking Ahead Events And other Releases(GMT)

• 09:30 UK BoE FPC Meeting Minutes 

Currency Forecast

 EUR/USD: The euro rose higher on Wednesday, boosted by reports that Germany's conservatives had reached an agreement with the center-left Social Democrats to form a government, easing political concerns in the EU's largest economy. Prospective coalition partners are under pressure to accelerate talks due to global instability caused by the escalating trade war initiated by U.S. President Donald Trump's broad import tariffs. These tariffs could drive inflation and heighten fears of a global recession. Conservative election winner Friedrich Merz and his team will meet again with the Social Democrats (SPD), led by Lars Klingbeil, at 9:30 a.m. (0730 GMT) to resolve the remaining differences. Immediate resistance can be seen at 1.1078(38.2%fib), an upside break can trigger rise towards 1.1160(23.6%fib).On the downside, immediate support is seen at 1.1016(50%fib), a break below could take the pair towards 1.0951(61.8%fib).

GBP/USD: The British pound strengthened against the U.S. dollar on Wednesday   as the imminent imposition by the U.S tariffs on China spooked world equity markets. The U.S. announced on Tuesday that 104% duties on imports from China will take effect shortly after midnight, following Beijing's refusal to yield to what it called blackmail. China vowed to fight till the end, intensifying concerns over demand, worsened by escalating trade tensions between the world's two largest economies. President Donald Trump's punishing tariffs have rattled global financial markets over the past week, with his latest move to ratchet up levies on Chinese imports deepening the global trade war and intensifying recession concerns. Immediate resistance can be seen at 1.2876(38.2%fib), an upside break can trigger rise towards 1.3026(April 2nd high).On the downside, immediate support is seen at 1.2704(50%fib), a break below could take the pair towards 1.2684(Lower BB).

AUD/USD: Australian dollar edged higher   from their recent lows against dollar  on Wednesday  as  U.S. dollar weakened on growing concerns over a potential U.S. recession. President Donald Trump's harsh tariffs have shaken global financial markets this week, with his recent increase in levies on Chinese imports escalating the trade war and heightening recession fears. The Australian dollar tends to be more sensitive to these global trade dynamics compared to other major currencies.At GMT 05:24, The Australian dollar was 0.88 % stronger at $0.6009 against US dollar, but remained near the five-year low it hit on Monday. Immediate resistance can be seen at 0.6055(38.2%fib), an upside break can trigger rise towards 0.6147 (50%fib).On the downside, immediate support is seen at 0.5943(23.6%fib), a break below could take the pair towards 0.5900(Psychological level)

 USD/JPY: The dollar   declined against Japanese yen on Wednesday as   the Japanese yen strengthened amid U.S. tariff implementation and global risk aversion.Trump's decision to impose broad tariffs globally, including on Japan, has complicated the BOJ's efforts to raise interest rates from their historically low levels.Bank of Japan Governor Kazuo Ueda stated on Wednesday that the central bank will closely assess the impact of U.S. tariffs on the economy when making monetary policy decisions.The BOJ next meets for a policy meeting on April 30-May 1, when the board is seen keeping interest rates steady at 0.5% and issuing fresh quarterly economic forecasts.As global markets navigate the complexities of international trade, all eyes are on the upcoming meeting between a Japanese trade delegation and U.S. officials. Immediate resistance can be seen at 146.41(38.2%fib) an upside break can trigger rise towards 147.00(Psychological level). On the downside, immediate support is seen at 144.66(23.6%fib) a break below could take the pair towards 144.16(Lower BB).

Equities Recap

Asian stocks slipped lower on Wednesday after President Donald Trump's eye-watering 104% tariffs on China took effect.

Japan's Nikkei 225 was down 3.78%  , South Korea's KOSPI was down 1.74%,Hang Seng was up  by 1.12%

Commodities Recap

Gold prices rose nearly 2% on Wednesday as the dollar weakened after Trump’s China tariffs took effect, with traders seeking safe-haven bullion amid rising trade tensions and recession fears.

Spot gold was up 1.9% at $3,038.54 an ounce, as of 0700 GMT. U.S. gold futures rose 2.2% to $3,056.60.

Oil prices dropped for a fifth consecutive day to their lowest since February 2021 on Wednesday, driven by demand concerns amid the escalating U.S.-China tariff war and a rising supply outlook.

Brent futures dropped $1.39, or 2.21%, to $61.43 a barrel as of 0655 GMT. U.S. West Texas Intermediate crude futures fell $1.50, or 2.52%, to $58.08. Both contracts lost as much as 4% before paring some losses.