In a dynamic shift in global markets, optimism surrounding potential peace talks between Ukraine and Europe has exerted pressure on the US Dollar. This development has occurred alongside a broad upsurge in cryptocurrency markets. Meanwhile, the US Dollar is playing a pivotal role in supporting the Australian Dollar's rebound, despite mixed economic data from Australia.
During Monday's Asian trading session, the USD/JPY pair edged closer to the 150.00 mark, undermined by the overall weakness of the US Dollar amid hopes for peace talks. In contrast, the Australian Dollar extended its recovery towards 0.6250, buoyed by positive sentiment following China's Caixin Manufacturing PMI for February.
Gold prices have also experienced movement, with the precious metal attracting buyers around $2,870 during the early Asian session on Monday. This increase in demand stems from uncertainty surrounding the ongoing Russia-Ukraine conflict, which continues to support gold as a safe-haven asset. As traders closely monitor developments, attention will turn to the release of the US February ISM Manufacturing Purchasing Managers Index later today.
The release of this index is expected to provide further insight into the current state of the US manufacturing sector. Market participants are eagerly awaiting these figures, which could influence future trading decisions and impact currency valuations.
In parallel developments, speculation mounts that the Bank of Japan (BoJ) will hike interest rates, lending support to the Japanese Yen. This move could have significant implications for currency markets in the coming weeks.
It is important to note that this article is not intended as investment advice. The views and opinions expressed herein are solely those of the authors and do not necessarily reflect the official policy or position of FXStreet or its advertisers. The authors and FXStreet are not registered investment advisors.