USD rally hits AUDUSD and NZDUSD hard, USDCAD rebounds above key MAs
The USD surged after Iran halted talks with the US, sending oil and yields higher and stocks lower, with AUDUSD and NZDUSD falling sharply while USDCAD rebounded above its 200-hour and 200-day moving averages.
The US dollar surged broadly on Monday after news that Iran would stop exchanging messages with the US in protest against what it called Israeli crimes, sending oil prices and bond yields higher while equities fell. The move weighed heavily on commodity-linked currencies, with the Australian and New Zealand dollars among the biggest decliners against the greenback.
The AUDUSD fell 0.62% and the NZDUSD dropped 1.20%, reflecting the risk-off sentiment triggered by heightened geopolitical tensions in the Middle East. The USDCAD showed relative resilience, declining only 0.34% before staging a solid technical rebound. The pair pushed back above a cluster of key moving averages that had previously acted as resistance, including the rising 200-hour moving average at 1.3801 and the 200-day moving average at 1.3812. This rebound suggests that the Canadian dollar, while pressured by the stronger USD and lower risk appetite, found support from elevated oil prices, which typically benefit the loonie due to Canada's status as a major oil exporter. For forex traders tracking these moves, NowPrice's real-time quotes provide the latest levels for USDCAD, AUDUSD, and NZDUSD as the session unfolds.
Looking ahead, traders will monitor further developments in US-Iran relations and any impact on oil supply. On the data front, this week features key US employment figures, including nonfarm payrolls, which could influence the Federal Reserve's policy path and further drive USD direction. For the commodity currencies, attention will also turn to central bank commentary from the Reserve Bank of Australia and the Reserve Bank of New Zealand, as well as global risk sentiment. The technical levels around the moving averages for USDCAD will be closely watched to see if the rebound can sustain, while AUDUSD and NZDUSD may test recent support zones if the USD continues to strengthen.