NZD/USD jumped about 0.73% on Wednesday, rallying sharply to around 0.5940 in a session that saw the New Zealand Dollar top the currency heatmap against every major counterpart.

The Japanese Yen (JPY) trades on the front foot against the US Dollar (USD) on Wednesday as the Greenback pauses after two days of strong gains, allowing the Yen to recover modestly. However, market sentiment remains cautious amid escalating tensions from the ongoing US-Iran war.

The Pound Sterling recovers some ground versus the US Dollar, though tensions in the Middle East remain high, pushing macroeconomic data releases onto the backseat.

AUD/USD trades with little direction on Wednesday, hovering around 0.7040 at the time of writing.

EUR/USD holds firm on Wednesday after briefly slipping to a three-month low on Tuesday. The pair stabilises as the US Dollar (USD) takes a breather following a two-day rally, with the Euro (EUR) drawing modest support from upbeat Eurozone economic data.

NZD/USD rebounds on Wednesday, gaining 0.45% to trade around 0.5920 at the time of writing, as the US Dollar (USD) weakens after two days of solid gains.

USD/CHF trades under mild pressure on Wednesday after choppy two-way price action, as the US Dollar (USD) eases following a two-day rally while traders assess Swiss inflation data alongside intervention warnings from the Swiss National Bank (SNB).

BNY’s Head of Markets Macro Strategy Bob Savage highlights that Eurozone composite PMI has risen to a three‑month high, extending private sector expansion, with Germany leading and France still in mild contraction.

Rabobank's Senior FX Strategist Jane Foley discusses USD/JPY backing off highs near 158 as profit taking and hawkish comments from BoJ Governor Ueda support the Japanese Yen. The bank highlights Japan’s vulnerability to higher energy prices but stresses the Yen’s safe haven role.

EUR/JPY trades around 183.00 on Tuesday at the time of writing, down 0.10% on the day, as the Japanese Yen (JPY) benefits from renewed safe-haven demand amid rising geopolitical tensions in the Middle East.

Eurozone Producer Price Index (YoY) came in at -2.1%, above expectations (-2.7%) in January

Eurozone Producer Price Index (MoM) registered at 0.7% above expectations (0.2%) in January

Eurozone Unemployment Rate came in at 6.1% below forecasts (6.2%) in January

Nomura analyzes Swiss inflation and Swiss Franc dynamics, noting that February CPI stayed at 0.1% year-on-year, slightly above its forecast. The bank highlights that CHF strength is lowering imported prices, offsetting some energy risks.

EUR/USD extends its losses for the third successive session, trading around 1.1600 during the European hours on Wednesday. The pair holds losses following the release of February’s HCOB Purchasing Managers’ Index (PMI) data from Germany and the Eurozone.

Eurozone HCOB Composite PMI in line with expectations (51.9) in February

Eurozone HCOB Services PMI registered at 51.9 above expectations (51.8) in February

Germany HCOB Composite PMI above expectations (53.1) in February: Actual (53.2)

Germany HCOB Services PMI above forecasts (53.4) in February: Actual (53.5)

MUFG’s Head of Research Derek Halpenny notes the Japanese Yen (JPY) is starting to benefit as risk aversion rises and the US Dollar still leading G10 performance.

France HCOB Composite PMI meets expectations (49.9) in February

France HCOB Services PMI meets forecasts (49.6) in February

Italy HCOB Services PMI above forecasts (52) in February: Actual (52.3)

AUD/USD pares its daily losses but remains in the negative territory for the second successive day, trading around 0.7030 during the early European hours on Wednesday.

The EUR/GBP cross holds positive ground near 0.8710 during the early European session on Wednesday. The Euro (EUR) edges higher against the Pound Sterling (GBP) following hotter-than-expected Eurozone inflation data.

Commerzbank’s Antje Praefcke argues that geopolitical tensions in the Middle East are increasingly negative for the Euro compared with the Dollar, given Europe’s dependence on energy imports and already sluggish growth.

The GBP/USD pair attracts some sellers to around 1.3310 during the early European session on Wednesday. Escalating conflict in the Middle East triggers a "flight to safety," supporting the US Dollar (USD) against the Pound Sterling (GBP).

The Indian Rupee (INR) declines against the US Dollar (USD), extending its losing streak for the fifth successive session. The USD/INR pair reached a fresh record high of 92.58 during the Asian hours on Wednesday.

The USD/CHF pair loses traction to around 0.7805 during the early European session on Wednesday. The Swiss Franc (CHF) gathers strength against the Greenback on safe-haven flows stemming from Middle East tensions.

The AUD/JPY cross meets with a fresh supply following the previous day's modest rebound from the vicinity of mid-109.00s, or the weekly low, and fails to gain any meaningful traction in reaction to the upbeat Australian GDP print.