EUR/USD price holds near $1.0790, USD/JPY stays below 150 and AUD/USD extends gains to $0.63 ahead of Trump tariff update
Major currencies firm as traders await clarity on U.S. tariffs and central bank signals
Key currency pairs are trading with a cautious bullish tone on Wednesday as markets brace for the unveiling of U.S. President Donald Trump’s reciprocal tariff package. The euro, yen, and Australian dollar each reflected varying responses to macroeconomic signals and central bank expectations, while the U.S. dollar remained under pressure amid fears of a trade-induced slowdown.
The euro held firm near 1.0790 against the U.S. dollar as broad-based greenback weakness persisted ahead of Trump’s tariff announcement. Uncertainty surrounding the scope and global reach of the levies has triggered investor concern, weighing on the dollar as recession risks grow. Trump is expected to announce new duties on a wide range of trading partners during a Wednesday event at the White House, with immediate implementation promised.
Meanwhile, Eurozone inflation softened as expected, with the HICP rising 2.2% year-over-year in March. This slight deceleration from February’s 2.3% supports expectations of an ECB rate cut later in April, adding mild downside pressure to the euro. However, dollar weakness and safe-haven unwinding have helped the pair remain buoyant in the short term.
EUR/USD. USD/JPY & AUD/USD price dynamics (Source: TradingView.)
USD/JPY stuck below 150 amid diverging rate paths
The USD/JPY pair struggled to retest the 150 mark, trading under pressure as investors factored in divergent monetary policy expectations between the Bank of Japan and the Federal Reserve. While the yen weakened slightly due to equity market optimism and fears of a slowdown in Japan’s export-heavy sectors, speculation of future BoJ rate hikes—fueled by elevated Tokyo inflation—limited losses.
On the U.S. side, soft ISM Manufacturing data and falling job openings reinforced bets that the Fed could cut rates by up to 80 basis points by year-end. The pair remains range bound, with upside capped near 150.25 and strong support around 149.00–148.70.
AUD/USD rises despite trade risks and domestic weakness
The Australian dollar rose to $0.63 for a second straight session, shrugging off global tariff concerns and local industrial weakness. The Reserve Bank of Australia kept its policy rate at 4.1% as expected but struck a slightly more dovish tone by dropping prior guidance on cautious easing. Although the RBA cited easing inflation, it expressed the need for more data to confirm the trend. Australia’s limited direct trade exposure to the U.S. also helped insulate the AUD from immediate tariff shocks.
In earlier reports, we highlighted that EUR/USD upside remains capped unless inflation pressures subside meaningfully or dollar weakness broadens. Similarly, USD/JPY is struggling to find direction amid diverging central bank stances, while AUD/USD continues to respond more to RBA signals and China data than U.S. risk directly.
