Japanese Yen and Aussie Dollar Forecasts: Risk-Off Mood Builds on Fresh Tariffs…

Explore expert forecasts and trade setups for USD/JPY in our latest market analysis here.

Shifting focus to the Australian Dollar, stimulus measures in China, and ongoing trade tensions are back in the spotlight.

AUD/USD Outlook: Building Permits, Tariffs, and China

Turning to AUD/USD, the Aussie housing sector will be in focus early in the Wednesday session. According to preliminary reports, building permits fell 0.3% month-on-month in February after rising 6.9% in January, while private house approvals rose 1%, down from 1.4% in January.

Economists consider housing sector data a leading indicator of the Aussie economy. Upward trends in housing approvals suggest a favorable demand environment, potentially pushing house prices higher. Rising house prices could boost consumer confidence, spending, and inflation.

However, tariff developments clouded market sentiment. Overnight, President Trump affirmed the roll out sweeping tariffs, raising levies on Chinese imports to 104%. With China accounting for one-third of Australian exports and Australia’s trade-to-GDP ratio above 50%, reduced demand for goods may affect the Aussie economy. A deteriorating economic outlook may raise expectations of multiple RBA rate cuts, pressuring the AUD/USD pair.

For a comprehensive analysis of AUD/USD trends and trade data insights, visit our detailed reports here.

Australian Dollar Daily Outlook: Fed Policy in Focus

In the US session, FOMC member chatter will influence AUD/USD. Hawkish remarks could widen the US-Aussie interest rate differential in favor of the US dollar. A wider rate differential may drag the AUD/USD pair below $0.59 toward the upper band of the descending channel.

Conversely, dovish rhetoric may narrow the rate differential, potentially driving the pair toward the April 7 high of $0.61268.