AUD/USD trades around 0.7160 on Monday at the time of writing, up 0.15% on the day, as the US Dollar (USD) corrects lower after its recent rebound.

The USD/JPY pair rises toward the 158.90 region as traders position ahead of Japan’s Q1 GDP release.

USD/CAD trades around 1.3740 on Monday at the time of writing, down modestly by 0.05% on the day. The pullback in the US Dollar (USD) against its major peers is weighing on the pair after signs of easing geopolitical tensions in the Middle East.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights that the global bond selloff is approaching levels where borrowing costs exceed nominal Gross Domestic Product (GDP) growth.

Kit Juckes at Societe Generale highlights that EUR/USD has lost downward momentum after slipping from 1.18 to 1.16, despite risk-off conditions and tumbling sentiment indicators.

MUFG’s Lee Hardman expects the British Pound (GBP) to stay on a softer footing as UK political uncertainty rises.

The US Dollar (USD) hesitates against the Swiss Franc (CHF) on Monday after rallying nearly 1.2% in the four previous trading days.

Brown Brothers Harriman’s (BBH) Elias Haddad notes Japan is close to the global ‘danger zone’ in bonds as more JGB issuance is planned to fund additional spending. Prime Minister Sanae Takaichi has called for a supplementary budget to offset higher commodity prices linked to the Iran war.

United Overseas Bank's (UOB) Quek Ser Leang and Lee Sue Ann turn more negative on AUD/USD after a sharp sell-off toward 0.7140. They now sees a real chance of testing and breaking the major 0.7100 support, with 0.7065 as the next downside level.

The AUD/USD pair trades flat around 0.7150 during the European trading session on Monday after recovering significant early losses. The Aussie pair bounces back as the US Dollar (USD) turns upside down on renewed hopes that the United States (US) and Iran will reach a deal soon.

AUD/JPY trades around 113.65 on Monday at the time of writing, up 0.16% on the day. The pair rebounds as persistent weakness in the Japanese Yen (JPY) supports the cross, despite disappointing economic data from China limiting gains for the Australian Dollar (AUD).

ING’s Chris Turner argues that higher long-dated yields and elevated energy prices are negative for Eurozone growth and thus for the Euro. He expects the European Central Bank to keep sounding hawkish to avoid losing control of long-end yields.

MUFG’s Lee Hardman notes that the US Dollar’s (USD) renewed strength and higher US yields have helped USD/JPY trade back above 159.00 overnight, with the pair moving closer to 160.00.

Societe Generale economists argue that the British Pound (GBP) and Gilts face a pivotal period as the Bank of England (BoE) reacts to persistent inflation and wage pressures, which have slowed the pace of rate cuts and hurt long-end Gilts.

NZD/USD rebounds around 0.5860 on Monday at the time of writing, up 0.35% on the day, after earlier touching a low near 0.5822 following disappointing economic data from China.

The USD/CAD pair trades marginally lower to near 1.3735 during the European trading session on Monday. The Loonie pair faces selling pressure as the US Dollar (USD) turns upside down due to hopes that the United States (US) and Iran will break the deadlock and reach a deal soon.

The British Pound (GBP) is trading higher against the US Dollar (USD) on Monday, to pare losses from a four-day sell-off.

The USD/IDR pair prolongs its recent well-established uptrend and advances to a fresh all-time peak, beyond the 17,700 mark, at the start of a new week.

The AUD/USD pair stages a goodish intraday recovery from the 0.7120-0.7115 area, or a fresh monthly low touched earlier this Monday, and sticks to modest gains through the first half of the European session.

MUFG’s Michael Wan notes that the Indian Rupee (INR) has been the weakest major Asian currency in 2026, sliding to a record low above 96 per US Dollar (USD) and losing about 5.5% since the Iran conflict began.

UOB’s Quek Ser Leang and Lee Sue Ann maintain a constructive view on USD/JPY after the pair advanced toward 158.84. Intraday, a push above 159.00 is anticipated, though staying above this barrier is uncertain and 159.40 is seen as distant resistance.

USD/CHF halts its five-day winning streak, trading around 0.7860 during the early European hours on Monday. The currency pair depreciated as the US Dollar (USD) surrendered its daily gains, despite a backdrop of heightened risk aversion and rising US interest rate hike expectations.

The GBP/JPY cross stages a modest recovery from a one-and-a-half-week trough, set earlier this Monday, and retakes the 212.00 mark during the early European session.

The Euro (EUR) rally against the British Pound (GBP) has been capped at 0.8730 on Monday, and the pair retreats to session lows sub-0.08720 at the time of writing.

Commerzbank’s Charlie Lay highlights that Indian Rupee (INR) has weakened nearly 12% against the US Dollar (USD) over a year, making it Asia’s worst performer, driven by heavy equity outflows and higher Oil import costs.

UOB’s Quek Ser Leang and Lee Sue Ann note that EUR/USD has dropped to a six-week low near 1.1620, with strong downward momentum keeping risks skewed lower.

The GBP/USD pair trades lower near 1.3300 in the early European trade at the start of the week, the lowest level seen in over five weeks.

The USD/CAD pair edges higher to around 1.3750 during the early European trading hours on Monday. The US Dollar (USD) extends its upside against the Canadian Dollar (CAD) as traders have largely priced ‌out US interest rate cuts this year, while expectations for a hike have risen. 

The Indian Rupee (INR) extends its over-a-week-long downfall against the US Dollar (USD) at the start of the week. The USD/INR pair explores the uncharted territory and posts a fresh all-time high at 96.33, as a fresh upside move in oil prices has weakened the Indian Rupee further.

The USD/JPY pair scales higher for the sixth consecutive day – also marking the seventh day of a positive move in the previous eight – and climbs to a two-and-a-half-week high during the Asian session on Monday.