Asian FX faces uncertainty amid geopolitical tensions and mixed indicators

Asian currency markets are experiencing heightened volatility as geopolitical tensions clash with mixed economic indicators across the region. USD/JPY remains under pressure as safe-haven yen demand persists amid escalating regional uncertainties, while risk-sensitive pairs AUD/USD and NZD/USD struggle to find clear direction. The Australian dollar faces headwinds from concerns over Chinese economic growth, a key driver for commodity demand, while the New Zealand dollar awaits domestic data releases. EUR/USD continues to consolidate within recent ranges as traders balance ECB policy expectations against broader dollar dynamics. Market participants are adopting a cautious stance, with reduced position sizes reflecting the uncertain environment. Technical levels remain crucial, with USD/JPY testing support near recent lows, while AUD/USD and NZD/USD trade within established ranges. The conflicting signals between geopolitical risks and economic fundamentals suggest continued choppy trading conditions in the near term.