The Australian Dollar (AUD) is sitting near the top of the major currency leaderboard, adding close to 0.3% on the day and pushing back toward 0.7200 after defending 0.7150. Almost none of that strength is homegrown.

MUFG’s Michael Wan argues that strong AI-related demand and semiconductor exports are offsetting Strait of Hormuz spillovers for some Asian markets, especially South Korea. He highlights hawkish Bank of Korea signals, robust exports and inflation, and expects South Korean rates to stay sticky.

Silver (XAG/USD) pulls back from intraday highs on Tuesday as the US Dollar (USD) rebounds amid lingering uncertainty over whether the United States and Iran can reach a deal to end the three-month-old war.

USD/CAD edges lower toward 1.3830 on Tuesday at the time of writing, as the US Dollar (USD) pauses after its recent advance. The pair gives back part of its latest gains despite a geopolitical backdrop that continues to favor safe-haven demand.

NZD/USD trades around 0.5930 on Tuesday at the time of writing, virtually unchanged on the day, after giving back part of the gains recorded earlier this week.

The AUD/USD pair elevated near the 0.7190 level on Tuesday as the US Dollar (USD) failed to find support following stronger-than-expected labor market data.

EUR/USD holds firm on Tuesday as traders react to conflicting headlines surrounding US-Iran negotiations. At the time of writing, the pair trades around 1.1639 after touching a daily high near 1.1655.

The Pound Sterling rose by some 0.19% on Tuesday as traders remained optimistic about a peace deal between the US and Iran, even though geopolitical uncertainty remains. The GBP/USD trades at around 1.3470 after bouncing off daily lows of 1.3446.

Scotiabank's strategists Shaun Osborne and Eric Theoret notes the Canadian Dollar (CAD) is underperforming into renewed United States (US)‑Canada trade talks, with USD/CAD trading in the mid‑1.38s.

USD/JPY ticks higher on Tuesday, moving toward the 160.00 mark once again and raising the risk of another intervention by Japanese authorities. At the time of writing, the pair trades around 159.80.

ING’s Francesco Pesole warns that USD/JPY short-dated implied volatility is not reflecting renewed intervention risk as the pair retests 160.0. Markets seem to expect the Bank of Japan’s June meeting to help cap the pair.

Brown Brothers Harriman’s Elias Haddad writes that mixed Eurozone Consumer Price Index (CPI) data and a fully priced 25 bps European Central Bank (ECB) hike leave the Euro (EUR) under pressure but not collapsing.

Rabobank’s Senior FX Strategist Jane Foley focuses on the Swedish Krona (SEK), noting that SEK has been the weakest G10 currency since the Iran war but has recently outperformed on a one‑month view.

Commerzbank’s Michael Pfister argues that the Brazilian Real’s (BRL) strong run is likely to pause as fiscal expansion, renewed inflation pressures and a polarized election weigh on sentiment.

BNY’s Bob Savage highlights a strong JGB auction and falling yields as markets price a 76% chance of a Bank of Japan (BoJ) rate hike this month. Despite this, USD/JPY remains near 160 for a fourth day, with Japanese officials issuing repeated intervention warnings.

The Euro (EUR) remains vulnerable against the British Pound (GBP) on Tuesday, capped below 0.8650, consolidating losses from the previous two trading days.

TD Securities strategists focus on AUD/NZD after a sharp post-RBNZ selloff. They argue the start of the Reserve Bank of New Zealand (RBNZ) hiking cycle versus a peaking Reserve Bank of Australia (RBA) cycle should cap the prior AUD/NZD uptrend, but expect short-term consolidation.

The Euro (EUR) nudges higher against the US Dollar (USD) on Tuesday, although the pair has retreated from session highs at 1.1650, trading at 1.16440 at the time of writing.

UOB’s Quek Ser Leang and Lee Sue Ann describe EUR/USD as neutral after Monday’s reversal from 1.1606 to close at 1.1630. They expect the pair to consolidate intraday between 1.1610 and 1.1660, while the broader 1.1590–1.1685 range remains in force.

DBS Group Research’s Philip Wee highlights that USD/JPY is again trading near 160, keeping markets wary of potential Japanese authorities’ intervention and a possible 25 bps rate hike by the Bank of Japan (BoJ) to 1% at its June meeting.

Eurozone preliminary Harmonized Index of Consumer Prices (HICP) data for May has come in at 3.2% Year-on-year (YoY), as expected, higher than the April reading of 3%.

Eurozone Core Harmonized Index of Consumer Prices (YoY) above forecasts (2.4%) in May: Actual (2.5%)

Eurozone Core Harmonized Index of Consumer Prices (MoM) declined to 0.3% in May from previous 0.9%

Eurozone Harmonized Index of Consumer Prices (MoM) down to 0.1% in May from previous 1%

Eurozone Harmonized Index of Consumer Prices (YoY) meets forecasts (3.2%) in May

The USD/JPY pair extends its sideways consolidative price move through the first half of the European session on Tuesday and currently trades around the 159.70-159.75 region, or over a one-month top.

The New Zealand Dollar (NZD) is going through a nervous consolidation against the US Dollar (USD) on Tuesday. The pair is looking for direction around 0.5930, following a reversal from 0.6000 on Monday, as investors remain wary of risk, awaiting developments in the Middle East conflict.

UOB’s Quek Ser Leang and Lee Sue Ann note GBP/USD dipped to 1.3407 on Monday before rebounding to finish almost unchanged at 1.3456. Intraday, they see the British Pound (GBP) confined between 1.3425 and 1.3485.

The Japanese Yen (JPY) continues to face intense pressure as global energy shocks and geopolitical tensions weigh heavily on Japan's economic outlook.

The British Pound (GBP) keeps marching higher against an ailing Japanese Yen (JPY) on Tuesday.