Mainland China’s financial markets reopened following an extended holiday, bringing a measure of calm to the region's currencies. The dollar’s reference rate was left mostly unchanged, contributing to the stabilization. Most Asian currencies, like the Taiwan dollar, pulled back, while the yen and yuan showed strength. The yen's gain of approximately 0.35% made it the strongest performer among G10 currencies. Meanwhile, market attention is focused on a potential U.S. tariff announcement on semiconductors. Despite rumors of a decision as early as tomorrow, skepticism remains due to the public comment period, which only concludes at midnight.

Asia Pacific Markets

The Japanese yen regained ground, with the dollar falling near ¥143 during early European trading, having previously reached close to ¥146 before the weekend. A drop below ¥142.90 would indicate a weaker technical setup. Japanese markets remained closed for a national holiday, with economic data releases expected later in the week.
In Australia, the local dollar saw a strong upward move leading into the weekend elections, hitting a yearly high just below $0.6500. However, weaker building approvals and a surprise dip in March household spending may signal a possible peak. A close below $0.6435 could confirm the beginning of a downturn.

European Markets

The euro struggled to hold gains in recent sessions. Support is seen near $1.1260, and a break may push the currency toward $1.1050. While final PMI data slightly exceeded expectations, its impact was minimal due to strong preliminary figures.
Meanwhile, in the UK, sterling traded within recent ranges. With the Bank of England meeting approaching, markets anticipate a rate cut. A fall below $1.3235 would support the notion of a medium-term top in place.

American Markets

The U.S. Dollar Index continued to show resilience, ending higher in North American trading for the fifth straight session. A key support level around 99.40 appears to be holding. Today’s release of March trade data will provide insight, as imports surged earlier to get ahead of anticipated tariff hikes. A significant increase in the trade deficit is expected. While speculation about new semiconductor tariffs persists, the official announcement may be delayed. President Trump has already imposed 100% tariffs on foreign-made films, claiming national security grounds, although the details remain uncertain.