EUR/USD price steady above $1.08, Aussie dips on tariffs, yen gains on hawkish BoJ tone
Major currencies move cautiously as traders assess central bank divergence and tariff threats
The foreign exchange market opened Tuesday with mixed momentum across major currency pairs, as traders weighed diverging central bank signals, trade policy uncertainty, and updated economic data.
The euro rebounded modestly from a two-week low, climbing back above the $1.08 level during the Asian session.
The recovery follows a four-day losing streak that saw the pair fall beneath the 23.6% Fibonacci retracement level of its February-March rally, triggering bearish sentiment. However, the pair remains vulnerable unless it breaks above the 1.0855 resistance zone. A decisive close below 1.0725, where the 38.2% Fibo level and 200-day SMA converge, would signal deeper losses toward 1.0655 or lower.
EUR/USD, USD/JPY & AUD/USD price movement (Source: TradingView.)
USD/JPY stabilizes after BoJ minutes hint at more hikes
The Japanese yen strengthened slightly from a three-week low against the U.S. dollar, supported by hawkish minutes from the Bank of Japan's January meeting. Policymakers signaled growing confidence in achieving the 2% inflation target, raising the odds of future rate hikes.
This offset pressure from a firmer USD, which drew support from stronger-than-expected S&P Global Services PMI data (54.3 in March vs. 51.0 prior). The USD/JPY pair remains above the critical 150.00 level, with 151.00 and 151.30 acting as key resistance. Failure to hold above 150.15 may trigger pullbacks toward 149.00.
AUD/USD faces resistance near 0.6300 amid tariff uncertainty
The Australian dollar advanced for a second straight session, buoyed by expectations that the Reserve Bank of Australia will keep rates unchanged in April and optimism around Chinese stimulus. However, AUD/USD remains below the 0.6300 resistance, constrained by uncertainty over U.S. President Donald Trump's proposed tariffs set for April 2. The pair holds above the 0.6220 support, but a break lower could revisit the March low of 0.6187. Meanwhile, Judo Bank’s PMI data signaled a modest improvement in Australia’s economic activity.
In previous coverage of these currency pairs, we highlighted the sensitivity of AUD/USD to Chinese economic measures, the role of BoJ’s policy divergence in supporting JPY strength, and the vulnerability of EUR/USD below 1.0850. These dynamics remain in play as global monetary policy paths diverge.
