Greenback rises as US launches ninth day of strikes

Evidence tier: A1 Evidence type: Auto-discovered official publication Source: Convera Company News Official publication date: 2026-07-20 Captured: 2026-07-20T13:19:41.871Z

Aussie, kiwi slip from one-month highs

Global markets opened weaker on Monday morning as investors reacted to further conflict between the US and Iran. The US dollar gained.

The weekend saw an escalation of the fighting that has seen three American service members killed in two days. US Central Command confirmed it had completed a ninth day of strikes against Iranian targets.

Crude oil jumped in early trading, with both WTI and Brent crude gaining 3.0%, with Brent now back above USD90 per barrel.

AUD/USD and NZD/USD were down 0.1%, with both markets easing from last week’s one-month highs. In Asia, the greenback was also higher. USD/JPY gained 0.1%, while USD/SGD and USD/CNH saw smaller gains.

Yen slides as confidence concerns linger

The yen remains on the back foot against the dollar, with USD/JPY holding above 162 despite comments from Finance Minister Satsuki Katayama aimed at supporting domestic investment through Japan’s Government Pension Investment Fund. While the remarks briefly lifted the yen, the move faded quickly as investors questioned how soon such proposals could be put into action.

Several factors continue to weigh on the currency, including elevated oil prices, concerns over Japan’s government finances, and ongoing Middle East tensions that have boosted demand for the dollar. Investors also remain cautious about the Takaichi administration’s policy direction.

A recent Nikkei QUICK survey showed expectations for the yen to weaken further in 2026, with many respondents pointing to higher government spending plans and uncertainty over funding sources. Delays to key economic policies have added to doubts, leaving the yen vulnerable to further losses, although the risk of a sharp rebound remains.

USD/JPY is trading just below the 162.84 high on July 1. Initial support is seen at the 21-day EMA of 161.83, followed by the 50-day EMA at 160.84 and the 100-day EMA at 159.53. On the upside, resistance stands at 162.84, ahead of the key psychological level at 163.00.

NZ inflation, Aussie jobs in focus

Inflation data dominates the week ahead. Canada’s June CPI arrives late Monday, followed by New Zealand’s Q2 CPI early Tuesday, a key input for the RBNZ outlook. UK CPI lands Wednesday, Singapore’s June reading follows Thursday afternoon, and Japan’s national CPI rounds out the week on Friday morning.

China opens the week Monday with its loan prime rate fixings, where both the one-year and five-year rates are expected to remain unchanged at 3.0% and 3.5%. Thursday night’s ECB decision is the week’s headline policy event. With the deposit rate at 2.3%, any shift in tone could drive euro volatility into the European close.

Australia’s June employment report on Thursday anchors the local docket, following last month’s 40k jobs gain and 4.4% unemployment rate. Friday delivers a global sweep of preliminary July PMIs across Japan, the Eurozone, the UK and the US, offering a timely read on mid-year momentum.

USD starts new week higher

Table: seven-day rolling currency trends and trading ranges

Key global risk events

Calendar: 20 – 24 July

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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.