The AUD/USD pair gathers strength to near 0.7025 during the Asian trading hours on Tuesday, bolstered by hawkish Reserve Bank of Australia (RBA) rate expectations.

The USD/JPY pair trades with a positive bias for the third straight day on Tuesday, recovering further from an over one-month low, around the 156.00 neighborhood, touched last week.

USD/CAD gains ground for the second successive day, trading around 1.4020 during Asian hours on Tuesday.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Tuesday at 6.7171 compared to the previous day's fix of 6.7162 and 6.6731 Reuters estimate.

The GBP/USD pair remains depressed below mid-1.3300s during the Asian session on Tuesday, though it holds above the previous day’s swing low. The downside, however, seems cushioned as traders seem hesitant to place aggressive bets ahead of this week's key event risks.

The EUR/USD pair extends the decline near 1.1170 during the early Asian trading hours on Tuesday, pressured by risk-off sentiment. Markets might turn cautious later in the day ahead of the US Federal Reserve (Fed) and European Central Bank (ECB) interest rate decisions later this week.

Monday's rise won back about half of what USD/JPY lost on October 22 and 23. Yen buying in Tokyo had taken it through 157.00 to its lowest since September 18. On Monday it rose from just above 156.50 to just above 157.50 and ended near its high for the session, two days before the Fed's decision.

The Australian Dollar drifted lower on Monday, down over 0.26%, as market mood was positive, as reflected by Wall Street ending in the green, while a potential de-escalation of the US-Iran conflict pushed energy prices lower.

TD Securities dropped its call for a Reserve Bank of New Zealand (RBNZ) pause and now expects three hikes, and NZD/USD still fell on Monday. It stopped just above 0.5700 for a fourth straight session and ended below that level, as traders bought Dollars before the Fed's Wednesday decision.

Germany's Ifo survey beat its forecast on Monday, and EUR/USD was back under its pre-release level by the 11th five-minute bar. Dollar buying ahead of the Federal Open Market Committee (FOMC) meeting, which ends Wednesday, then took it to its lowest since October 15.

The Pound was flat against the Euro on Monday, so GBP/USD's drop came from traders buying back Dollars before Wednesday's Federal Open Market Committee (FOMC) decision. It fell below 1.3350 to its lowest since the October 20 jobs data and ended just under that level, after three sessions above it.

The GBP/JPY rises over 0.20% on Monday as market sentiment is positive amid a potential de-escalation of the Middle East conflict and US equity markets trading in the green, with Anthropic, an AI company, filing for an IPO. The cross-pair trades above 210.00, after testing six-day lows of 209.13.

The Mexican Peso registers gains versus the US Dollar on Monday, as USD/MXN edges down 0.57% amid improving risk appetite and US tech stocks rising on Anthropic's IPO filing, while the Greenback posts solid gains versus major FX currencies, but not against the Mexican currency.

The US Dollar (USD) has started the week in an auspicious fashion, further extending its recovery to the area of multi-day highs. The Greenback’s extra strength has followed a mixed tone in US Treasury yields amid a generalised cautious stance among market participants.

USD/JPY trades with a positive bias on Monday as the Japanese Yen (JPY) underperforms its major peers, while a firmer US Dollar (USD) adds support to the pair. At the time of writing, USD/JPY trades around 157.42 after slipping to 156.08 on Friday, its lowest level since September 18.

NZD/USD declines by 0.25% on Monday, trading around 0.5680 at the time of writing, despite growing expectations of an interest rate hike in New Zealand.

USD/CAD rebounds on Monday, snapping a seven-day losing streak as traders reposition ahead of this week’s Federal Reserve (Fed) and Bank of Canada (BoC) monetary policy announcement.

The Pound Sterling loses some ground against the US Dollar, drifting lower by some 0.22% as traders wait for the release of the Federal Reserve’s monetary policy decision on Tuesday and Wednesday and also brace for the release of the UK’s Autumn Budget. The GBP/USD trades at 1.3342.

AUD/USD edges lower on Monday, trading around 0.7015 at the time of writing, down 0.24% on the day. The pair retreats after reaching its highest level in a month earlier in the day, as investors adopt a cautious stance ahead of several major economic events this week.

EUR/USD edges lower on Monday as a rebound in the US Dollar (USD) weighs on the Euro (EUR) ahead of this week’s Federal Reserve (Fed) and European Central Bank (ECB) monetary policy decisions.

Brown Brothers Harriman’s (BBH) Elias Haddad notes the European Central Bank (ECB) is expected to hold rates at 2.50%, with markets still pricing a strong chance of a December hike to 2.75%. While contained core inflation and tighter financial conditions justify waiting, France’s fiscal and bond market strains are highlighted as a key risk that could leave EUR/USD vulnerable to further downside.

Brown Brothers Harriman’s (BBH) Elias Haddad assesses Brazilian assets following President Lula’s surprise reelection. Haddad expects short-term downside for the Brazilian Real (BRL) as markets unwind the prior Bolsonaro-driven rally and react to rising public debt. However, Haddad highlights legislative constraints and Brazil’s attractive carry and commodity exposure as factors that could limit BRL weakness and later create a buying opportunity.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report EUR/USD continues to lack clear directional cues, trading in a narrower range than previously anticipated.

Silver (XAG/USD) flatlines within a tight range around $54.00 on Monday, with investors looking from the sidelines ahead of monetary policy decisions by the US Federal Reserve (Fed) and other central banks on Monday.

GBP/JPY posts modest gains on Monday as the Japanese Yen (JPY) underperforms its major peers. However, price action remains largely range-bound as traders brace for key events this week, including the UK Budget and the Bank of Japan’s (BoJ) monetary policy announcement.

Societe Generale strategists highlight Brazil’s election surprise, with Lula securing a fourth term and triggering expectations of sharp Brazilian Real (BRL) losses. They see unwinding of long BRL positions and stress key resistance levels around 5.20–5.31 for USD/BRL.

The US Dollar (USD) is trimming some losses against the Canadian Dollar (CAD) on Monday as investors brace for the US Federal Reserve (Fed) monetary policy decision, due on Wednesday, while lower Oil prices hurt the commodity-sensitive Loonie.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that USD/JPY’s sharp fall has generated strong downside momentum.

The Japanese Yen (JPY) trades lower against its major currency peers on Monday. In the European trade, the US Dollar (USD) is up 0.35% at around 157.36 against the Japanese currency.

Deutsche Bank strategists highlight Brazil’s surprise election, with President Lula winning a fourth term after trailing in the first round. A Tokyo-listed ETF tracking Brazilian equities fell sharply, and the Real is indicated lower via derivatives. They stress that a rightward shift in Congress should constrain fiscal loosening, making Lula’s ability to establish a credible fiscal path crucial for Brazilian assets.