AUD/USD, NZD/USD, and USD/JPY Outlook: Diverging Trends Amid Fed and Tariff Uncertainty

AUD/USD
The Australian Dollar is gaining ground as the US Dollar weakens amid mounting political and economic uncertainty. AUD/USD trades near 0.6540, approaching resistance at 0.6550. The Fed’s latest meeting minutes revealed increased openness to rate cuts, citing tariff-driven inflation risks — a dovish tilt that pressured the USD.

President Trump’s call for Fed Chair Powell’s resignation and demands for lower rates have fueled concerns of political interference, further undermining confidence in the Greenback. Meanwhile, tariff threats against multiple countries, including Libya and the Philippines, have added to the volatility.

As global investors seek stability, the Aussie benefits from a more stable policy backdrop and risk-sensitive flows. A decisive break above 0.6550 would confirm bullish continuation.

NZD/USD
NZD/USD is constructing a bullish base above 0.6000, with multiple supports forming around 0.5850. The latest tariff announcements have added downside pressure on the US Dollar, providing momentum for the Kiwi. With risk sentiment favoring commodity-linked currencies and bullish structure holding, NZD/USD could push toward the 0.61 level in the near term.

USD/JPY
USD/JPY faces renewed downside pressure near 146.50, unable to break resistance at 147.15. Trump’s 25% tariffs on Japanese goods, though delayed until August 1, have increased trade uncertainty. Markets await progress from an upcoming US delegation’s visit to Osaka, which could impact talks.

Falling US yields are narrowing the interest rate differential with Japan, strengthening the Yen. Combined with safe-haven demand and hopes for trade resolution, USD/JPY may continue to slide. A sustained break below 142 would likely accelerate losses.

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Technical Highlights:

• AUD/USD: Trading within an ascending broadening wedge. Support at 0.6400, resistance at 0.6650.
• NZD/USD: Bullish momentum builds above 0.6000. Next resistance seen at 0.6100.
• USD/JPY: Range-bound below 148.30. Key support lies at 142.00; break below could signal deeper declines.

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