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Global financial markets on April 23, 2025, are experiencing a shift toward risk-on sentiment as US President Donald Trump’s administration signals progress in US-China trade negotiations, easing tariff war fears. Trump’s reassurance that he will not seek to remove Federal Reserve Chair Jerome Powell has bolstered confidence, supporting a modest US Dollar recovery. However, safe-haven assets like gold remain resilient above $3,300, and the Japanese Yen holds firm amid trade deal hopes. Today’s global flash PMI data is in focus, with markets seeking clarity on economic health amid Fed rate-cut expectations and lingering trade uncertainties.
Current Level: Gold (XAU/USD) trades around $3,320, down from its all-time high of $3,500 touched on Tuesday.
Market Dynamics: A positive risk tone, driven by optimism over a potential US-China trade deal and Trump’s decision to back off from firing Powell, reduces safe-haven demand. US Treasury Secretary Scott Bessent’s comments on de-escalating tariffs and White House reports of trade proposals from 18 countries further support risk assets. However, Fed rate-cut bets (25 bps in June, three cuts by year-end) and a still-weak USD limit gold’s downside.
Technical Outlook: Support at $3,289 (38.2% Fibonacci level); resistance at $3,370. Overbought RSI warrants caution, but bullish momentum persists. Global flash PMIs today could influence risk sentiment and gold prices.
Current Level: AUD/USD hovers around 0.6390, recovering from recent losses.
Key Drivers: Australia’s Judo Bank PMI shows continued expansion (Composite PMI at 51.4), supporting AUD. China’s Q1 GDP growth of 5.4% and Trump’s optimism on trade talks (tariffs not rising to 145%) bolster AUD as a China-proxy currency. A USD recovery, fueled by Powell’s reaffirmed position and hawkish Fed comments from Adriana Kugler, caps gains. RBA’s uncertain rate outlook adds caution.
Technical Outlook: Resistance at 0.6439 (four-month high); support at 0.6350 (nine-day EMA). RSI above 50 signals bullish bias, but PMI data could sway direction.
Current Level: USD/JPY trades near 143.00, rebounding from a multi-month low below 140.00.
Influencing Factors: A risk-on impulse from US-China trade deal hopes and Trump’s support for Powell lifts USD demand, but JPY remains supported by safe-haven flows and BoJ rate-hike expectations. Japan’s mixed PMI data (Manufacturing PMI at 48.5, Services PMI at 52.2) reflects uneven growth, while US-Japan trade deal optimism limits JPY gains. Fed’s dovish outlook (three cuts in 2025) caps USD/JPY upside.
Technical View: Resistance at 143.20; support at 141.45. A break below 141.00 could target 139.55 (2024 low). RSI suggests room for recovery but bearish bias persists below 143.00.
Current Level: EUR/USD trades around 1.1380, down 0.35% after hitting a one-week low near 1.1300.
Market Dynamics: A recovering USD, bolstered by improved US sentiment, pressures EUR/USD. However, risk-on flows from US-China trade progress and ECB’s dovish stance (2.25% rate after April cut) limit losses. Eurozone PMI data today could signal economic health, with stronger readings potentially lifting EUR. US CPI easing to 2.4% YoY supports Fed rate-cut bets, capping USD gains.
Technical Outlook: Support at 1.1300 (23.6% Fibonacci); resistance at 1.1425. Bullish MACD and RSI easing from overbought favor bulls, but a break below 1.1300 could target 1.1250.
Current Level: GBP/USD trades near 1.3300, down from a seven-month high of 1.3424.
Key Drivers: USD strength and BoE rate-cut speculation (25 bps in May) weigh on GBP. Trump’s 10% tariffs on UK goods and 25% on steel/cars add pressure, though US-China trade optimism supports risk assets. UK’s cautious economic outlook amid global trade tensions limits GBP upside.
Technical View: Support at 1.3270; resistance at 1.3400. RSI near 80 suggests overbought conditions, with PMI data key for direction.
On April 23, 2025, markets are buoyed by optimism over US-China trade negotiations and Trump’s support for Fed Chair Jerome Powell, driving a modest USD recovery and risk-on sentiment. Gold holds above $3,300 despite reduced safe-haven demand, while AUD/USD and EUR/USD remain resilient. USD/JPY recovers but faces JPY strength, and GBP/USD retreats amid BoE caution. Today’s global flash PMI data will be critical for gauging economic health, with trade developments and Fed rate-cut expectations shaping near-term trends. Investors remain vigilant as tariff policies evolve.
Stay tuned for further updates.
