Asia-Pacific FX: Tariff concerns weigh on risk currencies

Asian currencies faced selling pressure during Thursday's session as renewed tariff discussions sparked risk-off sentiment across regional markets. AUD/USD fell 0.3% to 0.6480, while NZD/USD dropped 0.4% to 0.5920, as traders worried about potential trade disruptions impacting export-dependent economies. USD/JPY remained relatively stable at 149.50, with safe-haven yen flows offsetting dollar strength. Chinese yuan weakened modestly against the greenback, with USD/CNH rising to 7.2850 amid concerns about escalating trade tensions. Regional equity markets declined 0.8% on average, further pressuring risk-sensitive currencies. Technical levels show AUD/USD approaching critical support at 0.6470, while resistance remains firm at 0.6520. Market participants await Friday's Asian manufacturing PMI releases, which could provide clarity on regional economic resilience amid growing trade uncertainties.