The NZD/USD pair loses momentum to near 0.5875 during the early Asian trading hours on Wednesday. The New Zealand Dollar (NZD) weakens against the US Dollar (USD) following the employment report.

The EUR/JPY buyers stop the bleeding after three consecutive days of losses, registering modest gains of 0.56% on Tuesday. At the time of writing, the cross-pair trades at around 181.90 after US and Japanese authorities intervened in the FX markets to propel the Japanese Yen against its pairs.

NZD/USD trades on the front foot near 0.5886 on Wednesday, advancing around 0.3% and building on the rebound that lifted the pair off the 0.5850 area.

The USD/CHF retraced on Tuesday, down 0.16%, as the US Dollar weakened amid improved risk appetite, driven by renewed hopes of a US-Israel peace deal to open the Strait of Hormuz. The pair trades below 0.8100.

The Pound trades near 1.3450 against the Dollar on Tuesday, higher by 0.11% inside a session range of 36 pips, the second sub-40-pip day cable has produced inside a week.

The Mexican Peso surges to a one-month high on Tuesday as talks between the US and Iran could reopen the Strait of Hormuz, easing global inflationary pressures by freeing ship traffic. At the time of writing, the USD/MXN pair trades at 17.26, after reaching a high of 17.33.

Scotiabank’s Global FX Strategy team notes that Sterling remains modestly firmer, with GBP/USD continuing to pivot around long-term moving averages near 1.34.

USD/JPY trades modestly higher on Tuesday despite a softer US Dollar (USD), as the impact of recent intervention fades and the Japanese Yen (JPY) comes under pressure again.

Scotiabank’s Shaun Osborne and Eric Theoret note that the Canadian Dollar (CAD) has lagged other G10 currencies despite a softer US Dollar (USD) tone and improving Canadian data surprises versus the United States (US).

The Pound Sterling recovers some ground against the US Dollar on Tuesday, up 0.14%, as US jobs data was softer than expected but confirmed the strength of the labour market, with layoffs being little changed. The GBP/USD trades at 1.3451 after rebounding at 1.3419.

EUR/USD holds firm above 1.1500 on Tuesday as traders assess the latest developments surrounding US-Iran talks and the possible reopening of the Strait of Hormuz.

Scotiabank’s analysts observe that the Euro is consolidating around the 1.15 area against the Dollar, with limited Eurozone data to drive price action.

USD/JPY trades on the back foot near the 157.40 area during Tuesday's American session as the Japanese Yen (JPY) builds on the gains secured over the past week.

AUD/USD trades around 0.7035 on Tuesday at the time of writing, up 0.50% on the day. The pair is supported by improving market sentiment after US Treasury Secretary Scott Bessent said that an agreement with Iran to reopen the Strait of Hormuz could be reached as soon as Tuesday or Wednesday.

USD/CAD reverses its earlier losses on Tuesday as falling Oil prices weigh on the commodity-linked Canadian Dollar (CAD) following comments from US Treasury Secretary Scott Bessent on US-Iran talks.

BNY’s Geoff Yu highlights ongoing market focus on Japanese Yen intervention, noting authorities stepped back from action overnight as Tokyo seeks to preserve its International Monetary Fund (IMF) free‑floating status.

Rabobank’s Senior FX Strategist Jane Foley highlights that Japanese authorities benefited from the post-FOMC US Dollar (USD) drop, which eased pressure on the Japanese Yen (JPY).

GBP/JPY on Tuesday as the Japanese Yen (JPY) gives back part of its recent rally, which was driven by coordinated intervention from Tokyo and Washington.

The Euro (EUR) posts marginal gains against the US Dollar (USD) on Tuesday as Monday’s reversal from three-week highs at 1.1560 has been contained at 1.1500 so far.

Brown Brothers Harriman’s (BBH) Elias Haddad reports USD/JPY has fully retraced its prior slump and is testing key resistance at the 200-day moving average near 158.02.

The British Pound (GBP) edges higher against the US Dollar (USD) on Tuesday, reaching session highs above 1.3440 after finding support at the 1.3420 area earlier on the day.

USD/JPY trades around 157.95 on Tuesday at the time of writing, up 0.49% on the day.

The US Dollar (USD) shows marginal losses against the Swiss Franc (CHF) on Tuesday, as Dollar bulls struggle to find acceptance above 0.8100.

Rabobank’s Senior Market Strategist Benjamin Picton highlights coordinated action between the US Treasury and Japan’s Ministry of Finance (MoF) to defend the Japanese Yen (JPY), framing it as a potential “financial Fort Sumter” in capital markets.

EUR/JPY trades around 181.70 on Monday, up 0.44% on the day at the time of writing, supported by renewed optimism surrounding the Euro (EUR) and persistent weakness in the Japanese Yen (JPY).

ING’s Francesco Pesole expects New Zealand’s Q2 labour data to broadly match the Reserve Bank of New Zealand’s May projections, which implied one to two hikes in Q3. He favours a hike in September or October, with rising conviction for September.

The NZD/USD pair seesaws between tepid gains and minor losses through the first half of the European session on Tuesday, stalling the previous day's retracement slide from a two-month high – levels just above the 0.5900 mark.

MUFG’s Lee Hardman notes that the Japanese Yen has weakened modestly in Asia, with USD/JPY near its 200‑day moving average around 158.00 after recent joint intervention by Japan and the US.

The Euro (EUR) trades with caution at around Monday’s low of 1.1500 against the US Dollar (USD) during the European trading session on Tuesday.

United Overseas Bank’s (UOB) Quek Ser Leang reports AUD/USD briefly tested 0.7069 before retreating sharply to 0.6984, with the move seen as overdone. Intraday, the Australian Dollar is expected to range between 0.6980 and 0.7030.