Asian FX steady as US court rules Trump-era tariffs illegal

Asian currency pairs traded in narrow ranges during Monday's session following a US court ruling that declared most Trump administration tariffs illegal, potentially impacting future trade policy dynamics. USD/JPY held steady at 146.85, while AUD/USD edged up 0.1% to 0.6785 on improved risk sentiment. The court decision could reduce trade tensions between the US and China, supporting risk-sensitive Asian currencies. Chinese yuan strengthened modestly with USD/CNH declining to 7.1250. Market participants are reassessing the implications for global trade flows and potential policy reversals under the current administration. Regional equity markets showed mixed performance with Shanghai Composite up 0.3% while Nikkei remained closed for holiday. Technical analysis shows USD/JPY facing resistance at 147.20, with support established at 146.50. The ruling may prompt position adjustments in carry trades involving Asian currencies as traders evaluate reduced tariff risks.