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Dollar holds firm as USD/JPY trades near 159.75 amid Hormuz risk and RBNZ decision

Dollar Holds Firm as Hormuz Risk Shapes Asia | Technical Analysis | Asian Session | 1 Sep 2026

September 1, 2026
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Asian Session Report — Tuesday, 1 September 2026 | Capital Street FX Skip to main content
Tuesday, 1 September 2026  ·  Asian Session Technical Analysis — Live Update, Refreshed Intraday

Dollar Holds Its Post-Warsh Bid as Fresh US-Iran Strikes Rattle the Strait of Hormuz, Nikkei Wavers on Rising Yields, and Corn Grinds Near Three-Year Highs Into Wednesday’s RBNZ Decision

USD/JPY · NZD/USD · Aluminium · Corn · Nikkei 225 · Cardano · Solana — live Asian market outlook today, updated through the trading session

Asia-Pacific markets are trading cautiously on the first day of September as the Dollar holds most of the strength it built after Fed Chair Kevin Warsh’s hawkish Jackson Hole keynote last Friday, which pushed CME-implied September rate-hike odds to roughly 56-57%, while a fresh flare-up between the United States and Iran keeps energy and industrial-metal markets on edge. US forces struck Iranian rocket launchers on Monday, Iran retaliated, and reports of a Saudi VLCC halted after being struck by projectiles near the Strait of Hormuz have added a fresh geopolitical premium to oil and the broader commodity complex, with Treasury yields pushing to fresh highs. USD/JPY is holding just under the 160.00 handle near 159.75, a level Treasury Secretary Scott Bessent flagged as close to historical intervention risk after meeting Bank of Japan Governor Kazuo Ueda and Japan’s Finance Minister Satsuki Katayama at the G20 in Asheville, where he said he believes Japan will act to strengthen the Yen. NZD/USD is holding a firm tone near 0.5920 ahead of Wednesday’s Reserve Bank of New Zealand decision, where roughly 90% of economists surveyed expect a 25-basis-point hike to 2.75%. Japan’s Nikkei 225 has traded off its earlier lows and briefly turned positive despite headwinds from higher bond yields, even as a stronger-than-expected Japanese manufacturing PMI print at 54.9 pointed to the fastest new-order growth in more than eight years on AI and semiconductor demand. In commodities, Aluminium is consolidating near $3,230 a tonne as fresh Strait of Hormuz risk to Gulf smelters offsets a surge in Chinese exports, while Corn is holding just below its highest level since July 2023 near $5.14 a bushel after the USDA slashed its 2026 yield estimate and the Pro Farmer Crop Tour flagged even weaker prospects. Crypto markets are mixed, with Solana easing toward $103 after touching close to $109 over the weekend on hawkish-Fed-driven profit-taking, even as the Bitwise Solana staking ETF crossed the $1 billion mark, while Cardano is choppy near $0.20 as traders digest a closely watched governance vote on its Constitutional Committee. The dominant theme for the session is the interplay between the market’s ongoing digestion of Warsh’s hawkish keynote and the fast-moving Strait of Hormuz escalation, with Wednesday’s RBNZ decision the next major catalyst on the calendar. Ready to act on today’s setups? Open an Account with Capital Street FX.
Section 1 · Live Market Headlines

Asian Market News — Live Now, 1 September 2026

Top-moving headlines shaping the Asian market outlook today, updated through the morning

Critical

Oil Holds Gains After Fresh US-Iran Strikes Near the Strait of Hormuz

Oil remains underpinned after Monday’s US strike on Iranian rocket launchers and a subsequent Iranian retaliation drove crude higher, with President Trump vowing to respond forcefully. Reports that a Saudi VLCC was halted after being struck by projectiles in the Strait of Hormuz extend a pattern of tanker incidents in the waterway, keeping a geopolitical risk premium embedded across energy and industrial commodities into the Asian session.

Geopolitics
Critical

Bessent, Ueda and Katayama Meet at G20 as USD/JPY Nears 160 Intervention Zone

Treasury Secretary Scott Bessent said he believes Japan will act to strengthen the Yen and that markets are pricing in a Bank of Japan rate hike, following meetings with BOJ Governor Kazuo Ueda and Japan’s Finance Minister Satsuki Katayama at the G20 in Asheville. USD/JPY stood near 159.75, close to the 160.00 level that has previously been associated with heightened intervention risk, as Katayama confirmed orderly FX rates remain a shared priority.

Central Banks
High

China and Japan Manufacturing PMIs Beat Forecasts, Lifting AUD/NZD Sentiment

The RatingDog China General Manufacturing PMI rose to a two-month high of 51.5 in August from 50.9, a ninth straight month of expansion with accelerating new orders and exports, seen as a positive signal for the commodity-linked Antipodean currencies. Japan’s S&P Global Manufacturing PMI rose to 54.9 from 54.5, an eighth consecutive month of improvement, with new orders growing at their fastest pace in over eight and a half years on AI and semiconductor demand, though it fell short of the 55.1 forecast.

Macro Data
High

RBNZ Widely Expected to Hike OCR to 2.75% on Wednesday

A Reuters poll shows roughly 90% of economists expect the Reserve Bank of New Zealand to raise the Official Cash Rate by 25 basis points to 2.75% at Wednesday’s meeting, with two-thirds seeing at least one further hike this year. Westpac expects the move to be accompanied by a data-dependent signal on an October follow-up, with projections implying an OCR near 3% by year-end, keeping NZD/USD’s tone constructive into the decision.

FX
High

Corn Holds Near Three-Year Highs as USDA Slashes Yield Outlook

Corn futures are consolidating just below their highest level since July 2023 near $5.14 a bushel after the USDA cut its 2026 US yield estimate to 180.7 bushels per acre from 183, well short of the average analyst estimate, while the Pro Farmer Crop Tour pegged yields even lower at 173.2 bushels per acre. Corn gained roughly 5.5% last week and about 15.6% in August, on track for its strongest monthly gain since April 2021, as heat and excess rainfall damaged parts of the Corn Belt.

Commodities
Medium

Solana and Cardano Mixed as Hawkish Fed Tone Meets Fresh Institutional Flows

Solana has eased toward the $103 area after touching close to $109 over the weekend, as whale withdrawals and Warsh’s hawkish tone intensify short-term volatility, even as the Bitwise Solana staking ETF (BSOL) crossed the $1 billion assets-under-management mark in under ten months. Cardano is choppy near $0.20 as the network’s Constitutional Committee governance vote and continued progress on the Ouroboros Leios scaling upgrade compete with broader hawkish-Fed-driven risk aversion across crypto markets.

Crypto

Live · Updated through the Asian morning session, Tuesday 1 September 2026

Section 2 · Economic Calendar

Asian Economic Calendar This Week — 1 September 2026

Key releases and events shaping price action through the rest of the week

Asian economic calendar for the week of Tuesday, 1 September 2026, listing scheduled times, events, expectations, impact level and market read.
Time Event Forecast / Detail Impact Market Read
🇺🇸Friday, 28 August (Recap) Fed Chair Kevin Warsh’s First Jackson Hole Keynote Hawkish tone; September Fed odds rose to roughly 56-57% 🔴 CRITICAL Still the dominant driver of the Dollar’s broad strength into September
🇮🇷Monday (Recap) US Strikes Iranian Rocket Launchers; Iran Retaliates Saudi VLCC reportedly struck by projectiles near the Strait of Hormuz 🔴 CRITICAL Keeps oil and industrial-metal markets on edge into the Asian session
🇨🇳Today (Released) China RatingDog Manufacturing PMI 51.5 vs 50.9 expected, 50.9 prior — two-month high 🔴 CRITICAL Ninth straight expansion month; supportive for AUD/NZD as China proxies
🇯🇵Today (Released) Japan S&P Global Manufacturing PMI 54.9 actual vs 55.1 forecast, 54.5 prior 🟢 MEDIUM Eighth straight improvement; fastest new-order growth in 8.5 years
🇯🇷Today (Ongoing) Bessent-Ueda-Katayama G20 Meeting Bessent says Japan likely to act to strengthen the Yen 🔴 CRITICAL Keeps USD/JPY’s setup as genuine two-way risk near the 160 handle
🇳🇰Wednesday, 2 September, 2pm NZT RBNZ Policy Meeting ~90% of economists expect a 25bp hike to 2.75% 🔴 CRITICAL The dominant near-term catalyst for NZD/USD direction
🇺🇸Ongoing USDA Corn Crop Production Updates 2026 yield cut to 180.7 bpa; Pro Farmer sees 173.2 bpa 🟢 MEDIUM Keeps Corn’s supply-tightness narrative intact into harvest

Section 3 · Trade Ideas

Asian Session Trade Ideas — USD/JPY, NZD/USD and More

Technical setups and fundamental context across the session’s seven key instruments

USD/JPY

FX · ~159.75 — Hovering Near the 160 Intervention Zone
159.75
▼ Retreating from Monday’s 160.20 one-month high on a modest USD dip
▪ BEARISH USD/JPY — Sell Rallies Toward 161.00, Target the 157.00 Zone
Sell Rally161.00
Stop Loss162.50
Take Profit157.00

Why This Setup

Firming BOJ hike bets and Bessent’s public push for a stronger Yen alongside Ueda and Katayama are genuine headwinds near the 160 intervention zone, though the hawkish Warsh keynote and Strait of Hormuz risk-off flows are a real source of two-way risk.

USD/JPY daily chart
Chart by TradingView

NZD/USD

FX · ~0.5920 — Firm Into Wednesday’s RBNZ Decision
0.5920
▲ Steady as near-certain RBNZ hike bets offset broad USD strength
▪ BULLISH NZD/USD — Buy Dips Toward 0.5860, Target the 0.6050 Zone
Buy Dip0.5860
Stop Loss0.5790
Take Profit0.6050

Why This Setup

A near-certain 25bp RBNZ hike to 2.75% on Wednesday and Westpac’s projected OCR path toward 3% by year-end are genuine tailwinds, though broad post-Warsh Dollar strength and Fed hike bets remain a real source of two-way risk.

NZD/USD daily chart
Chart by TradingView

Aluminium

Commodities · ~$3,235/t — Steadying as Gulf Supply Risk Returns
$3,235
▲ Bouncing off recent lows as Hormuz tensions revive smelter risk
▪ BULLISH ALUMINIUM — Buy Dips Toward $3,180, Target the $3,360 Zone
Buy Dip$3,180
Stop Loss$3,120
Take Profit$3,360

Why This Setup

Renewed Strait of Hormuz risk to Gulf smelters, echoing the earlier Emirates Global Aluminium Al Taweelah shutdown, is a genuine tailwind, though surging Chinese exports (+18.7% year-on-year) and Tomago’s extended Australian output are a real source of two-way risk.

Aluminium daily chart
Chart by TradingView

Corn

Commodities · ~$5.14/bu — Holding Near Its Highest Level Since July 2023
$5.14
▲ Consolidating near three-year highs after last week’s sharp rally
▪ BULLISH CORN — Buy Dips Toward $4.95, Target the $5.50 Zone
Buy Dip$4.95
Stop Loss$4.75
Take Profit$5.50

Why This Setup

The USDA’s cut to 180.7 bushels-per-acre and the Pro Farmer Crop Tour’s even lower 173.2 bpa estimate are genuine tailwinds for tightening US supply, though any weather improvement into the harvest window is a real source of two-way risk.

Corn daily chart
Chart by TradingView

Nikkei 225

Index · ~66,050 — Choppy as Yields Offset a Strong PMI Print
66,050
▼ Off earlier lows and briefly positive, but capped by rising yields
▪ NEUTRAL-TO-BEARISH NIKKEI — Sell Rallies Toward 66,700, Target the 64,800 Zone
Sell Rally66,700
Stop Loss67,300
Take Profit64,800

Why This Setup

Rising JGB and US Treasury yields alongside the Strait of Hormuz escalation are genuine headwinds for equity risk appetite, though the strong Japan manufacturing PMI and AI-driven order growth are a real source of two-way risk that could limit downside.

Nikkei 225 daily chart
Chart by TradingView

Cardano

Crypto · ~$0.198 — Choppy Around the Constitutional Committee Vote
$0.198
▼ Consolidating as hawkish-Fed risk-off tone offsets governance progress
▪ BULLISH CARDANO — Buy Dips Toward $0.185, Target the $0.230 Zone
Buy Dip$0.185
Stop Loss$0.172
Take Profit$0.230

Why This Setup

Continued progress on the Ouroboros Leios scaling upgrade and a surge in native on-chain volume are genuine tailwinds, though the hawkish-Fed-driven risk-off tone spilling across broader crypto markets is a real source of two-way risk.

Cardano daily chart
Chart by TradingView

Solana

Crypto · ~$103 — Pulling Back From the Weekend’s Near-$109 High
$103.10
▼ Easing on whale outflows and hawkish-Fed-driven volatility
▪ BULLISH SOLANA — Buy Dips Toward $96.00, Target the $118.00 Zone
Buy Dip$96.00
Stop Loss$89.00
Take Profit$118.00

Why This Setup

The Bitwise Solana staking ETF (BSOL) crossing $1 billion in assets and a record run of network activity are genuine tailwinds, though large short-term whale withdrawals and the hawkish Fed tone remain a real source of two-way risk.

Solana daily chart
Chart by TradingView

Section 4 · Frequently Asked Questions

Asian Session FAQ — 1 September 2026

Quick answers to the questions traders are asking this session

Why is USD/JPY hovering so close to the 160 intervention zone?
USD/JPY is trading near 159.75 after briefly touching a one-month high of 160.20 on Monday, with the pair caught between the hawkish Warsh-driven Dollar bid and mounting Bank of Japan hike expectations. Treasury Secretary Scott Bessent’s comments after meeting BOJ Governor Kazuo Ueda and Finance Minister Satsuki Katayama at the G20 — that he believes Japan will act to strengthen the Yen — have added a fresh layer of intervention-risk premium near the 160 handle.
What is driving the RBNZ decision expected this Wednesday?
A Reuters poll shows roughly 90% of economists expect the Reserve Bank of New Zealand to raise the Official Cash Rate by 25 basis points to 2.75% on Wednesday, 2 September, with two-thirds anticipating at least one further hike this year. Westpac projects the OCR reaching close to 3% by year-end, and the near-certainty of the move is keeping NZD/USD’s tone constructive into the decision, even against a broadly firmer Dollar.
Why are oil-sensitive assets like Aluminium reacting to the Strait of Hormuz?
Aluminium is steadying near $3,235 a tonne after a fresh round of US-Iran strikes and a reported attack on a Saudi VLCC near the Strait of Hormuz revived supply-risk premiums for Gulf-based smelters, echoing the earlier shutdown at Emirates Global Aluminium’s Al Taweelah facility. That risk is being partially offset by a sharp rise in Chinese aluminium exports and Australia’s Tomago smelter securing government support to extend output.
Why has Corn climbed to its highest level since 2023?
Corn futures are holding just below $5.14 a bushel, their strongest level since July 2023, after the USDA cut its 2026 US yield forecast to 180.7 bushels per acre from 183 and the Pro Farmer Crop Tour pegged yields even lower at 173.2 bushels per acre. Heat stress and excessive August rainfall across parts of the Corn Belt, alongside weak French and constrained Ukrainian production, have reinforced the bullish tone across the grain complex.
Why is the Nikkei 225 struggling to hold onto gains despite a strong PMI?
The Nikkei 225 has traded off its earlier lows and briefly turned positive near 66,050, but rising Japanese and US Treasury yields tied to the Strait of Hormuz escalation are capping upside even as Japan’s manufacturing PMI rose to 54.9, its eighth straight month of improvement, with new orders growing at their fastest pace in more than eight years on AI and semiconductor demand.
Why are Solana and Cardano trading in opposite short-term directions?
Solana has pulled back toward $103 after touching close to $109 over the weekend, as short-term whale withdrawals compound the hawkish Fed tone, even though the Bitwise Solana staking ETF (BSOL) just crossed $1 billion in assets. Cardano is choppy near $0.198 as traders weigh a closely watched Constitutional Committee governance vote and continued progress on the Ouroboros Leios upgrade against the same broader hawkish-Fed-driven risk aversion.
What should traders watch for the rest of the day?
The key swing factors into the close of the Asian session are any further escalation around the Strait of Hormuz, the trajectory of US Treasury and JGB yields, and positioning ahead of Wednesday’s RBNZ decision. Continued BOJ commentary following the Bessent-Ueda-Katayama meeting and any fresh USDA data on the grain complex are also likely to shape sentiment into the European handover.

Asian Session Summary — Tuesday, 1 September 2026 (Live Update)

Tuesday’s Asian session is trading cautiously as markets continue to digest last Friday’s hawkish Jackson Hole keynote from Fed Chair Kevin Warsh, which pushed CME-implied September Fed odds to roughly 56-57%, while a fresh escalation between the United States and Iran near the Strait of Hormuz keeps a geopolitical risk premium embedded across oil, industrial metals and broader risk sentiment. USD/JPY is holding just under the 160.00 handle near 159.75, a level flagged by Treasury Secretary Scott Bessent as close to historical intervention risk after his G20 meeting with BOJ Governor Kazuo Ueda and Finance Minister Satsuki Katayama, while NZD/USD is holding firm near 0.5920 ahead of Wednesday’s widely expected RBNZ hike to 2.75%. Japan’s Nikkei 225 has traded off its earlier lows and briefly turned positive near 66,050, caught between rising bond yields and a stronger-than-expected manufacturing PMI print showing the fastest new-order growth in more than eight years. In commodities, Aluminium is steadying near $3,235 a tonne as renewed Strait of Hormuz risk to Gulf smelters offsets a surge in Chinese exports, while Corn is consolidating just below its highest level since July 2023 near $5.14 a bushel after the USDA’s yield downgrade. Crypto markets are mixed, with Solana easing toward $103 on whale-driven profit-taking even as the Bitwise Solana ETF crosses $1 billion in assets, and Cardano choppy near $0.198 around its Constitutional Committee governance vote. Highest-conviction session idea: fade USD/JPY rallies into the 160 intervention zone while favouring dips in the RBNZ-supported Kiwi and the supply-constrained Corn and Aluminium complex, staying alert to any further Strait of Hormuz escalation as the dominant swing factor for risk sentiment.

For the individual instruments: USD/JPY sell rallies toward 161.00, stop 162.50, target 157.00 — firming BOJ hike bets and Bessent’s push for yen strength are a genuine headwind, though the hawkish Warsh keynote and Hormuz-driven risk-off flows are a real source of two-way risk. NZD/USD buy dips toward 0.5860, stop 0.5790, target 0.6050 — a near-certain RBNZ hike on Wednesday is a genuine tailwind, though broad post-Warsh Dollar strength is a real source of two-way risk. Aluminium buy dips toward $3,180, stop $3,120, target $3,360 — renewed Gulf smelter risk is a genuine tailwind, though rising Chinese exports are a real source of two-way risk. Corn buy dips toward $4.95, stop $4.75, target $5.50 — the USDA’s yield downgrade is a genuine tailwind, though any harvest-window weather improvement is a real source of two-way risk. Nikkei 225 sell rallies toward 66,700, stop 67,300, target 64,800 — rising yields and Hormuz-driven risk-off are a genuine headwind, though the strong manufacturing PMI is a real source of two-way risk. Cardano buy dips toward $0.185, stop $0.172, target $0.230 — progress on the Leios upgrade is a genuine tailwind, though hawkish-Fed-driven crypto risk-off is a real source of two-way risk. Solana buy dips toward $96.00, stop $89.00, target $118.00 — the Bitwise ETF crossing $1 billion is a genuine tailwind, though whale-driven volatility is a real source of two-way risk. The decisive variable for the rest of the day is the market’s ongoing digestion of the Strait of Hormuz escalation alongside Wednesday’s RBNZ decision, both of which are likely to define cross-asset sentiment into the European handover. Size positions accordingly, and note that fast-moving Middle East headlines carry genuine event risk that could exaggerate moves in either direction.

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Capital Street FX · Asian Session Daily Technical Analysis · Tuesday, 1 September 2026

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© 2026 Capital Street FX. Report cross-checked and refreshed against live coverage from Reuters, Investing.com, Bloomberg, FXStreet, Trading Economics, CoinGecko, CoinMarketCap, Bybit and OKX as of the Asian morning session, 1 September 2026. Prices are indicative intraday levels and may differ from your broker’s feed. Session-trend charts in this report are stylised, illustrative representations of the session’s price action and are not live, auto-updating feeds.