News

Australian Dollar holds gains against Japanese Yen as China’s Trade Balance rises more than expected

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.

Source  Fxstreet1780975904

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

Source  Fxstreet1780974296

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

Source  Fxstreet1780974280

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

Source  Fxstreet1780974264
China’s Trade Surplus widens in May: What CNY723.98B Trade Balance means for the Australian Dollar

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.

Source  Fxstreet1780974162

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

Source  Fxstreet1780974142

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

Source  Fxstreet1780974122

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

Source  Fxstreet1780968602

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

Source  Fxstreet1780968601
Japan’s Katayama: Stance unchanged, prepare for decisive measures

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

Source  Fxstreet1780966185
Japan's Kiuchi hopes BoJ will keep cooperating with government on fighting deflation

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.

Source  Fxstreet1780965289

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

Source  Fxstreet1780965148

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

Source  Fxstreet1780962798

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

Source  Fxstreet1780960093

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

Source  Fxstreet1780959606

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

Source  Fxstreet1780958701
South Korean Won: Policy support and equity rebalancing – BBH

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.

Source  Fxstreet1780955580
Chinese Yuan: Neutral within 6.7620–6.7980 band versus US Dollar – UOB

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.

Source  Fxstreet1780953480
Asia FX: Oil and Fed backdrop weigh on KRW, IDR – OCBC

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).

Source  Fxstreet1780950420
South Korean Won: Policy support tempers KRW losses – MUFG

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

Source  Fxstreet1780948140
Forex Today: Markets assess Japanese GDP as ECB decision looms

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.

Source  Fxstreet1780945826
Chinese Yuan: Appreciation trend outweighs yield gap – Commerzbank

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.

Source  Fxstreet1780945620
Singapore Dollar: Further losses against US Dollar toward 1.2960 – UOB

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.

Source  Fxstreet1780942980
CEE FX: Zloty most vulnerable in risk-off – ING

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.

Source  Fxstreet1780940280
India: Hawkish RBI stance and FY27 risks – DBS

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.

Source  Fxstreet1780935475
NY Fed Consumer Inflation Expectations mostly unchanged, job market weakening

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.

Source  Fxstreet1780935132
Bank of Canada: Unemployment focus urged – NBC

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.

Source  Fxstreet1780930901
Euro area: Growth noise and inflation outlook – Societe Generale

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.

Source  Fxstreet1780930320
Norwegian Krone : Norges Bank stance supports NOK crosses – BBH

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.

Source  Fxstreet1780929440
Indian Rupee: RBI measures support INR near term – MUFG

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.

Source  Fxstreet1780928811
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