Rabobank’s Senior FX Strategist Jane Foley highlights that AUD/JPY has surged to its highest level since 1990, supported by Australia’s status as a net energy exporter and speculation about further RBA rate hikes.

The Euro (EUR) remains on the back foot against the US Dollar (USD) on Thursday, with EUR/USD extending losses for the third straight day as the escalating US-Iran war keeps the Greenback firmly bid.

In a Truth Social Post on Thursday, United States (US) President Donald Trump said that when Oil prices go up, as it has since he launched the war with Iran, the US benefits. Trump's biggest interest, however, is stopping Iran from having nuclear weapons.

DBS Group Research’s Eugene Leow notes that despite a planned release of strategic reserves and expectations of a short conflict, WTI Oil has pushed above $90 per barrel.

The new Supreme Leader of Iran, Mojtaba Khamenei, issued his first statement, which was shared on Iranian TV. Khamenei said that attacks on neighboring bases will inevitably continue and that Iran will not refrain from avenging the blood of its martyrs.

Royal Bank of Canada (RBC) economist Abbey Xu notes that Canada’s merchandise trade deficit widened sharply in January as both exports and imports declined.

ING’s James Knightley says February US inflation was contained before the Iran military action, with core and goods prices showing limited tariff pass-through.

Deutsche Bank previews the upcoming ECB meeting, arguing that policy is very likely to remain unchanged on 19 March despite heightened uncertainty from the Middle East conflict and higher energy prices.

BNY strategist Geoff Yu argues that Brazil and the Brazilian Real (BRL) currently underpin Latin American resilience to global shocks thanks to commodities and high real rates.

AUD/USD trades lower on Thursday at around 0.7095 at the time of writing, down 0.83% on the day, after reaching its highest level since June 2022 near 0.7185 on Wednesday. The pullback mainly reflects renewed demand for the US Dollar (USD) as investors turn more cautious.

TD Securities strategist Pooja Kumra highlights that markets are focused on the Strait of Hormuz and Iran conflict scenarios, with prediction markets assigning only modest odds to a ceasefire by April 2026.

The Canadian Dollar (CAD) edges lower against the US Dollar (USD) on Thursday, pressured by sustained demand for the Greenback amid the ongoing US-Iran war. At the time of writing, USD/CAD is trading around 1.3621, extending its rebound after falling to one-month lows near 1.3525 earlier this week.

HSBC stresses stable income as crucial in the current environment and maintains bonds as a core portfolio component.

National Bank of Canada (NBC) analysts note that Canada’s merchandise trade deficit widened sharply in January, reaching its largest level in five months, mainly due to temporary disruptions in the automotive sector.

The Japanese Yen (JPY) trades under pressure against the US Dollar (USD) on Thursday, with USD/JPY returning to levels that previously triggered official “rate checks” by Japanese authorities on January 23, reviving concerns about potential currency intervention.

The GBP/USD pair is trading near the 1.3350 level, losing ground for the third consecutive day amid intensifying tensions in the Middle East.

NZD/USD trades lower on Thursday, hovering around 0.5860 at the time of writing and down 0.90% on the day. The pair is posting a third consecutive daily decline, pressured by renewed strength in the US Dollar (USD) and rising geopolitical tensions.

Gold (XAU/USD) trades under pressure on Thursday as a stronger US Dollar (USD) and rising Treasury yields cap upside attempts. At the time of writing, XAU/USD trades around $5,113, down nearly 1.20% on the day.

The US Dollar (USD) trades with a firmer tone across the FX board in the American session on Thursday, as persistent concerns about oil supply disruptions undermine the market’s mood. The EUR/USD pair trades in the 1.1520 price zone, not far above the 2026 low at 1.1507.

The US Dollar (USD) picks up further pace on Thursday, largely exceeding the 99.00 hurdle to hit fresh multi-month tops while nearing the psychological 100.00 hurdle on the US Dollar Index (DXY).