Asian FX rallies against USD as Trump delays EU tariff implementation

The US dollar faced broad selling pressure across Asian markets Monday, with major currencies posting significant gains following Trump's decision to delay 50% EU tariffs from June 1 to July 9. EUR/USD rose 0.4%, AUD/USD gained 0.5%, while GBP/USD, NZD/USD, and USD/CAD all advanced between 0.3-0.4%. The Chinese yuan (USD/CNH) also strengthened despite PBOC intervention attempts. The tariff delay sparked risk-on sentiment, benefiting commodity and growth-sensitive currencies. Market participants interpreted the postponement as reducing immediate trade war risks, though uncertainty remains for July negotiations. Technical momentum favors continued dollar weakness, with the DXY index breaking below 104.50 support. Asian equity futures rallied alongside currency moves, suggesting improved risk appetite. Traders should monitor upcoming US data releases and any Trump administration comments that could shift the current dovish dollar narrative.