The AUD/JPY cross posts modest gains near 112.90 during the Asian trading hours on Tuesday. A larger-than-expected China trade surplus provides some support to the China-proxy Australian Dollar (AUD). Markets are on high alert for foreign exchange intervention from Japanese authorities.

China Trade Balance USD came in at $105.43B, above forecasts ($92.1B) in May

China Imports (YoY) came in at 27.4%, above forecasts (25%) in May

China Exports (YoY) came in at 19.4%, above forecasts (15%) in May

China's Trade Balance for May, in Chinese Yuan (CNY) terms, arrived at CNY723.98 billion, expanding from the previous figure of CNY585.69 billion.

China Trade Balance CNY came in at 723.98B, above expectations (637B) in May

China Exports (YoY) CNY climbed from previous 9.8% to 13.8% in May

Australia National Australia Bank's Business Conditions unchanged at 3 in May

Australia National Australia Bank's Business Confidence up to -14 in May from previous -24

Japan’s Finance Minister Satsuki Katayama said on Tuesday that the stance is unchanged and authorities are prepared for decisive measures.

Japan's Economy Minister, Minoru Kiuchi, said on Tuesday that long-term rates are determined by markets through diverse factors, including supply-demand and steady economic recovery.

Australia Westpac Consumer Confidence up to 80.6% in June from previous 3.5%

Japan Money Supply M2+CD (YoY) climbed from previous 2.3% to 2.5% in May

South Korea Gross Domestic Product Growth (YoY) came in at 3.8%, above forecasts (3.6%) in 1Q

South Korea Gross Domestic Product Growth (QoQ) registered at 1.8% above expectations (1.7%) in 1Q

New Zealand Manufacturing Sales increased to 3.6% in 1Q from previous -0.5%

Brown Brothers Harriman’s (BBH) Elias Haddad highlights that the Korean Won (KRW) has outperformed peers after authorities intensified stabilization efforts. Measures include new FX rules, tighter oversight of offshore derivatives and FX hedging by the National Pension Service.

UOB’s Quek Ser Leang and Lee Sue Ann observe that USD/CNH edged higher toward 6.79 but upward momentum remains limited. For the day, they expect consolidation in a 6.7800–6.7950 range.

OCBC’s Sim Moh Siong notes that higher Oil prices and a firmer United States (US) policy outlook are pressuring Asia FX, particularly the Korean Won (KRW) and Indonesian Rupiah (IDR).

MUFG’s Hardman links a sharp correction in South Korean AI‑heavy equities to potential pressure on the Korean Won.

The US Dollar Index (DXY) trades with a cautious tone near the 100.00 region as investors balance resilient United States (US) economic data against improving global risk sentiment following reports that Iran has ended its military operations against Israel.

Commerzbank’s Thu Lan Nguyen notes that despite the People’s Bank of China (PBoC) relaxing the cap on US Dollar (USD) deposit rates, the Chinese Yuan has already appreciated about 3% against the Dollar this year.

UOB’s Quek Ser Leang and Lee Sue Ann highlight that USD/SGD surged past 1.29 after a blowout US nonfarm payrolls report, with the S$NEER still trading well above its mid-point.

ING’s Frantisek Taborsky highlights that Central and Eastern European FX is being driven by global headlines and hawkish US repricing, with local data having limited impact.

DBS Group Research economist Radhika Rao says the Reserve Bank of India (RBI) kept its policy rate at 5.25% with a neutral stance but a clearly hawkish tone, focused on inflation and currency stability.

The New York Federal Reserve Bank released its May Survey of Consumer Expectations (SCE), in which households expect inflation to edge down a tick, despite upward pressures from the Middle East conflict.

National Bank of Canada’s (NBC) Warren Lovely, Stéfane Marion and Matthieu Arseneau argue that the Bank of Canada (BoC) should add an explicit unemployment rate forecast to its quarterly Monetary Policy Report.

Societe Generale strategists argue that the negative 1Q Gross Domestic Product (GDP) print mainly reflects Irish volatility rather than broad weakness, with ex‑Ireland growth at 0.3% qoq and stronger PMI and French industrial data.

Brown Brothers Harriman’s Elias Haddad (BBH) notes that May Consumer Price Index (CPI) in Norway could be pivotal, with a hot print potentially bringing forward another Norges Bank hike after its surprise May move.

MUFG’s Michael Wan analyses new Reserve Bank of India and government measures that could generate around US$40bn of inflows and partially plug India’s FY2026/27 balance of payments gap.