Asian FX Mixed as Oil Hits $75; USD/JPY Tests 158.00 Resistance

Asian currency markets showed divergent paths Monday as crude oil's surge to $75.00 created inflation concerns across the region. USD/JPY climbed 0.6% to 157.95, approaching the critical 158.00 resistance level as the yen weakened despite traditional safe-haven demand. AUD/USD fell 0.8% to 0.6420 as China's manufacturing PMI disappointed at 49.8, missing expectations of 50.2. Meanwhile, USD/SGD gained 0.4% to 1.3580 as Singapore's inflation data came in higher than expected at 2.8% YoY. The Korean won underperformed with USD/KRW rising 1.1% to 1,395 on concerns about regional stability. Oil's impact varied, with commodity exporters like MYR showing resilience while importers faced pressure. Technical analysis reveals USD/JPY facing strong resistance at 158.00-158.20 zone, coinciding with the 61.8% Fibonacci retracement of the May-June decline. Asian equity indices fell 0.5-1.2%, adding to risk-off sentiment.