AUD/USD trades on the front foot on Tuesday as the US Dollar (USD) softens on growing expectations that the Middle East conflict could end soon, lifting risk-sensitive currencies such as the Australian Dollar (AUD).

EUR/USD edges higher on Tuesday as the US Dollar (USD) weakens across the board following its recent rally, allowing the Euro (EUR) to snap a five-day losing streak.

The Pound Sterling registers modest gains after Iran's IRGC threatened to attack US companies as of April 1, turning market mood sour, while the US Dollar trimmed some of its earlier losses. Nevertheless, the move was short-lived as the GBP/USD traded at 1.3190, up 0.04%.

NZD/USD trades around 0.5710 on Tuesday at the time of writing, down 0.15% on the day as the US Dollar (USD) stabilizes and market caution persists.

The USD/JPY fell to near the 159.00 level, extending its slide below the 160.00 barrier on Tuesday as the Japanese Yen (JPY) finds support from intervention threats and hawkish signals from policymakers, while the US Dollar (USD) eases slightly despite the ongoing war with Iran.

USD/C.AD edges higher on Tuesday, with the Canadian Dollar (CAD) extending its decline against the US Dollar (USD) for a seventh consecutive day, even as the Greenback eases. At the time of writing, the pair is trading around 1.3960, hovering near its highest level since December 2025.

TD Securities analysts highlight growing official frustration with Japanese Yen weakness as USD/JPY breached the 160 level in the past week.

EUR/GBP trades in a choppy range on Tuesday, as traders digest the latest economic data from both the United Kingdom and the Eurozone. At the time of writing, the cross is trading around 0.8691, rebounding after marking an intraday low of 0.8676.

TD Securities remains constructive on AUD/NZD, viewing recent weakness as a correction within an ongoing uptrend.

BNY’s Head of Markets Macro Strategy Bob Savage notes that the Indian Rupee (INR) faces continued pressure, recording the highest level of realized selling among Asia-Pacific (APAC) currencies in March.

The Pound (GBP) is posting a fragile recovery attempt against the Japanese Yen (JPY) on Tuesday, following Monday’s sharp reversal. The pair found support at 210.00 on Monday, but recovery attempts remain limited below a previous support level around 211.00.

The Pound Sterling trades higher against its major currency peers, rising 0.17% to near 1.3200 against the US Dollar (USD), during the European trading session on Tuesday.

Societe Generale’s Kenneth Broux and colleagues note that EUR/GBP has bounced from February’s 0.8610 support and is now approaching its 200‑day moving average.

USD/CHF advances on Tuesday, rising 0.12% to trade near 0.8005 at the time of writing, extending a six-day winning streak. The pair is supported by a slight advantage for the US Dollar (USD) and relative weakness in the Swiss Franc (CHF) amid improving global risk appetite.

ING’s Chris Turner notes short-dated Euro swap rates have started to edge lower after a sharp spike, but real rate differentials have moved against EUR/USD. He argues this could be Euro-negative if the ECB refrains from an April hike while inflation expectations stay high.

The EUR/USD’s tame recovery attempts seen earlier on Tuesday have been capped below 1.1490, before the release of softer-than-expected Eurozone Harmonised Index of Consumer Prices (HICP) figures.

The Australian Dollar (AUD) trades higher against its major currency peers, with the AUD/USD pair rising 0.15% to near 0.6865, during the European trading session on Tuesday.

USD/KRW rallies on Tuesday, trading around 1,529.70 at the time of writing, up 0.93% on the day after hitting an intraday peak at 1,536.04, its highest level since March 2009.

MUFG’s Senior Currency Analyst Lee Hardman highlights that the Japanese Yen (JPY) has held recent gains, with USD/JPY dipping below 160.00 as officials step up verbal intervention.

Eurozone Harmonized Index of Consumer Prices (MoM) increased to 1.2% in March from previous 0.6%

NZD/USD extends its losing streak for the sixth successive day, trading around 0.5710 during the European hours on Tuesday. The technical analysis of the daily chart signals a persistent bearish bias as the pair is moving downwards within a descending channel pattern.

Eurozone Core Harmonized Index of Consumer Prices (YoY) came in at 2.3% below forecasts (2.4%) in March

Eurozone Harmonized Index of Consumer Prices (MoM) rose from previous 0.6% to 1.9% in March

Eurozone Core Harmonized Index of Consumer Prices (MoM): 0.8% (March)

Eurozone Harmonized Index of Consumer Prices (YoY) registered at 2.5%, below expectations (2.7%) in March

The USD/JPY pair ticks lower to near 159.60 during the European trading session on Tuesday.

Germany Unemployment Change below expectations (2K) in February: Actual (0K)

Germany Unemployment Rate s.a. in line with expectations (6.3%) in February

The Eurozone preliminary Harmonized Index of Consumer Prices (HICP) data for March is scheduled to be published today at 09:00 GMT.

Standard Chartered’s Nicholas Chia and Chong Hoon Park note that new Bank of Japan (BoJ) data show underlying inflation near or above target and a positive output gap, while USD/JPY testing 160 raises the risk of earlier rate hikes than their current Q3 baseline.