Asian markets traded cautiously on Tuesday as investors weighed fresh signs of stress from global trade tensions and growing expectations of policy easing in Australia.

Comments from Federal Reserve Bank of Atlanta President Raphael Bostic added to the uncertainty. While Bostic noted the U.S. economy is in a “pause” and flagged investment hesitancy, he also reiterated that inflation remains elevated and the labour market is still tight—casting doubt on the near-term case for Fed rate cuts.

Earlier, U.S. Treasury Secretary Scott Bessent downplayed concerns over foreign dumping of U.S. bonds but said Washington has tools ready, including potential buybacks of off-the-run securities, to help stabilise markets if needed. His remarks came amid broader concerns about debt market volatility and the legacy of prior issuance strategies (Bessent lambasted Yellen for using similar tools!).

In China, authorities in Harbin publicly accused U.S. intelligence agents of cyberattacks targeting infrastructure linked to the Asian Winter Games in February. Beijing alleged the NSA conducted a wide range of intrusions across sectors including energy and telecommunications, further straining already tense U.S.-China relations. No love lost between China and the US right now, is there?

On the policy front, minutes from the Reserve Bank of Australia's April meeting revealed a shift toward likely further easing, setting the stage for a rate cut at the May gathering. Policymakers highlighted growing global risks—particularly from U.S. tariffs—and emphasised the importance of not undermining progress on inflation by acting too soon.

Major FX traded mixed in not large ranges. EUR/USD lost ground but as I update its little net changed. USD/JPY ticked a little higher but also retraced much of its move. AUD, NZD and GBP all added a few tics.

Gold rose.

EUR/USD update:

eurusd wrap 15 April 2025 2
Source: Forex Live