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Australia’s Judo Bank Composite PMI increased to 51.6 in March from 51.3, indicating growth in the economy.
The USD/JPY fell to a three-week low around 147.00 as risks associated with Trump’s tariffs boosted the Japanese Yen.
Impact On The Australian Dollar
The AUD/USD remained under pressure below 0.6300 despite positive Chinese PMI data, influenced by Trump’s tariffs and US recession concerns.
Gold prices corrected from a record high of $3,168 but retained gains due to rising fears of a global trade war and recession.
In the cryptocurrency market, Bitcoin and major altcoins declined following tariff announcements by President Trump.
The recent uptick in Australia’s Judo Bank Composite PMI to 51.6 implies that economic activity is still expanding, though only modestly. This reading, while slightly better than the previous month’s 51.3, shows we’re not seeing runaway growth, but rather a steady, if restrained, recovery across both manufacturing and services. For those of us observing forward-looking indicators, this consistency suggests domestic demand isn’t fading, but any optimism should be cautiously tempered by broader international volatility.
Market Trends And Volatility
Currency markets have reacted clearly to trade announcements. The Japanese Yen gained strength, with the USD/JPY pair dropping to near 147.00—its lowest level in three weeks. Much of that move seems directly linked to increasing trade concerns tied to tariff talk. Tariffs create uncertainty, and in this case, they’ve reduced appetite for the US dollar while boosting demand for perceived safe-haven currencies. We should take note of this inverse relationship, which may persist if global trade headwinds continue or escalate.
The Australian dollar, on the other hand, continues to struggle. Despite relatively upbeat Chinese data—which often provides underlying support for the AUD due to Australia’s trade ties—the currency hasn’t been able to regain ground, remaining stuck under 0.6300. The pricing seems to reflect both an uncertain global outlook and a more defensive tone in risk-sensitive currencies. There’s also speculation circulating about possible knock-on effects from US economic data and how it might influence Federal Reserve action, which keeps USD strength elevated in comparison.
Gold had a sharp pullback after hitting a historic high at $3,168. The correction, while sharp, hasn’t erased the broader rally seen over the past few weeks. Part of the continued buoyancy seems to come from concerns that trade tensions could develop into something more disruptive. We’re already seeing market participants rotate away from cyclical assets and into stores of value. If tariffs continue to dominate headlines, gold should remain attractive across multiple timeframes.
In digital assets, the reaction was more abrupt. Bitcoin and its peers weakened quickly in the aftermath of tariff-related news. These assets, widely viewed by some as alternatives during market strain, didn’t hold up this time. That disconnect suggests we might be heading into a phase where institutional flows reduce exposure rather than seek risk-adjusted returns in volatile markets. It’s an important cue. The correlation between equity risk-off events and crypto resilience appears to be weakening.
In the coming sessions, attention should be paid to how markets interpret both fresh data and policy responses. Tracking shifts in sentiment through implied volatility, yield differentials, and commodity moves should offer more definitive cues on pricing imbalance. Equally, the spread between market expectations and central bank signals deserves more scrutiny. We’re positioning through clarity, not just momentum. Guardrails remain tight—opportunities may prove more tactical than directional.
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