USD risk sentiment steadies as US indices rise, Nvidia rebounds pre-earnings

Broader US stock indices traded higher but remain confined within key moving average levels, keeping the short-term risk backdrop neutral and limiting directional impulse for risk-sensitive FX pairs such as AUD/USD, NZD/USD and USD/JPY. Nvidia shares rebounded after seven consecutive sessions of declines, with buyers defending the 100-day moving average in the prior session and pushing price back to the upside. Despite that constructive bounce, the intraday technical structure stays balanced, with Nvidia trading between its 100-hour and 200-hour moving averages, a range that must break decisively before a clearer trend emerges. The rebound arrives ahead of Nvidia's earnings release after the closing bell, an event with outsized influence on broad equity risk appetite given the stock's index weighting. A strong result and upside equity follow-through would typically support high-beta currencies and pressure traditional havens including the Swiss franc and yen, while a disappointment risks a risk-off rotation that favors USD and JPY. FX traders should expect subdued positioning into the print and elevated volatility immediately after.