The US Dollar (USD) experienced mixed movements across major currency pairs during the Asian session on Friday, influenced by intervention fears, inflation data, and geopolitical developments. The USD/JPY pair rebounded from mid-155.00s, reaching a daily high near 157.55, but bullish momentum was limited due to ongoing concerns about potential intervention by Japanese authorities. Japan’s top foreign exchange diplomat, Atsushi Mimura, confirmed that officials remain in close contact with the US regarding currency matters, keeping intervention risks in play and capping further JPY losses. Technical indicators for USD/JPY show downside pressure persists, with the pair holding above the 200-day EMA and immediate support at 156.47, while resistance is seen at 157.48 and 158.73. The Japanese Yen weakened following softer consumer inflation figures from Tokyo, which may prompt the Bank of Japan to pause policy adjustments amid economic concerns related to Middle East tensions [1].
Meanwhile, the AUD/USD pair traded near 0.7200, maintaining Thursday’s gains as expectations rise for the Reserve Bank of Australia (RBA) to increase its Official Cash Rate by 25 basis points to 4.35% in the upcoming monetary policy meeting. This hawkish outlook is supported by Q1 Consumer Price Index (CPI) data showing annualized growth of 4.1%, up from 3.6%. The US Dollar Index (DXY) hovered near a 10-day low of around 98.00, reflecting weakness against the Japanese Yen, attributed to Japan’s intervention in the forex market. Investors are also awaiting the US ISM Manufacturing PMI data for April, expected to rise to 53.0 from 52.7 in March [2].
In the USD/CHF pair, the US Dollar gained ground, trading around 0.7820 after posting 1.25% losses the previous day. The risk-off mood supported the USD as safe-haven demand increased amid geopolitical tensions, specifically US President Donald Trump's commitment to continue the naval blockade of Iranian ports and concerns over the Strait of Hormuz. US economic data showed the Personal Consumption Expenditures (PCE) Price Index rose to 3.5% in March from 2.8% in February, with the core PCE at 3.2% YoY, matching forecasts. Preliminary US GDP Annualized expanded by 2.0% in Q1 2026, below the 2.3% expectation but up from 0.5% previously. On the Swiss side, the KOF Leading Indicator improved to 97.9 in April from 95.6 in March, beating forecasts, and the ZEW Swiss Survey Expectations rose to -30.3 in April from -35.0 in March, indicating a more stable outlook [3].
Across the board, currency heat maps show the Japanese Yen was the strongest against the New Zealand Dollar today, while the US Dollar was the weakest against the Japanese Yen this week. Technical and fundamental factors, including intervention risks, inflation data, and geopolitical tensions, continue to drive volatility in major currency pairs [1][2][3].
CONCLUSION
The US Dollar's performance remains mixed, with intervention fears and inflation data weighing on USD/JPY, while AUD/USD is buoyed by hawkish RBA expectations. Geopolitical tensions and robust US inflation figures support USD/CHF amid a cautious market mood. Overall, currency markets are experiencing moderate volatility, with traders closely monitoring central bank actions and geopolitical developments for further direction.