The Canadian Dollar (CAD) trades broadly flat against its major currency peers, except the New Zealand Dollar (NZD), wobbling around 1.3810 against the US Dollar (USD) during the Asian trading session on Wednesday.

EUR/JPY remains stronger for the fourth successive day, trading around 185.30 during the Asian hours on Wednesday. The currency cross is holding a constructive bias as it extends above both the nine-day and 50-day Exponential Moving Averages (EMAs) clustered just under 185.00.

Silver price (XAG/USD) remains subdued for the second successive day, trading around $76.90 per troy ounce during the Asian hours on Wednesday. The non-interest-bearing white metal holds losses due to renewed tensions and ongoing uncertainty around the strategic Strait of Hormuz.

The AUD/NZD cross attracts heavy sellers during the Asian session on Wednesday following softer consumer inflation figures from Australia, snapping a three-day winning streak to its highest level since April 2013 touched the previous day.

The NZD/USD pair attracts some buyers to near 0.5870 during the Asian trading hours on Wednesday. The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) after the Reserve Bank of New Zealand (RBNZ) interest rate decision.  

AUD/USD extends its gains for the second successive day, trading around 0.7160 during the Asian hours on Wednesday. The pair declines as the Australian Dollar (AUD) loses ground following the release of domestic inflation data.

The AUD/JPY cross attracts some intraday sellers following a modest Asian session rise to the 114.35 area, or a nearly two-week top, in reaction to softer Australian consumer inflation figures.

On Wednesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8291 compared to the previous day's fix of 6.8288 and 6.7883 Reuters estimate.

The GBP/USD pair attracts some dip-buyers during the Asian session on Wednesday and stalls the previous day's retracement slide from the vicinity of a nearly two-week top, levels just above the 1.3500 psychological mark.

The USD/JPY pair loses ground to near 159.20 during the early Asian trading hours on Wednesday. Speculations that Japanese authorities will step in again to prop up the currency provide some support to the Japanese Yen (JPY) against the US Dollar (USD).

The EUR/USD pair trades on a flat note near 1.1640 during the early Asian session on Wednesday. However, the potential upside for the major pair might be limited amid renewed tensions in the Middle East after Iran threatens to retaliate after US strikes on launch sites and boats.

The Australian Dollar registers modest gains of 0.14% against the Japanese Yen as improved risk appetite increased demand for riskier currencies, eroding the Yen's safe-haven status.  At the time of writing, the AUD/JPY trades at 114.17, after reaching a daily low of 113.78.

The Australian Dollar has spent the better part of a year bullying its trans-Tasman cousin, and the scoreboard is lopsided. AUD/NZD has just tagged its highest level since around 2013, up roughly 14% from its July low, closing higher in eight of the last ten months and on pace to make it eleven.

Cable looks dead this week, and that is not an accident. The Bank of England (BoE) and the Federal Reserve (Fed) have quietly become the same central bank.

There is something almost comic about a central bank that spent a year insisting rates needed to come down, only to find itself staring at inflation heading the wrong way.

The Australian Dollar hovers at around its Tuesday’s opening price during the North American session, with traders awaiting the release of the Aussie’s Consumer Price Index (CPI) report on Wednesday. Meanwhile, geopolitics are weighing on the AUD/USD, which is trading flat at 0.7170.

The highlight in the Australian economic docket this week is the April Consumer Price Index (CPI) figures, which are expected to be released by the Australian Bureau of Statistics (ABS) on Wednesday at 01:30 GMT.

AUD/USD trades in a narrow range on Tuesday, even as the US Dollar (USD) strengthens on fading hopes for a quick resolution to the Middle East war after US forces carried out fresh strikes in southern Iran, overshadowing ongoing diplomatic efforts between Washington and Tehran.

MUFG analysts see growing downside risks for the Turkish Lira (TRY) versus the US Dollar (USD) as domestic politics and an energy-driven terms-of-trade shock strain Turkey’s external position.

The British Pound (GBP) weakens against the US Dollar (USD) on Tuesday as traders reassess ongoing US-Iran negotiations following renewed US military action in southern Iran. At the time of writing, GBP/USD is trading around 1.3444, down nearly 0.43% on the day.

The Euro loses ground during the North American session amid rising tensions in the Middle East, as the US and Iran exchanged fire near the Strait of Hormuz, while negotiations continued. At the time of writing, the EUR/USD trades at 1.1622, down 0.15%.

USD/CAD reverses earlier intraday gains on Tuesday, with the Canadian Dollar (CAD) drawing support from rising Oil prices and offsetting broader US Dollar (USD) strength. At the time of writing, the pair is trading around 1.3800 after hitting an intraday high near 1.3821 earlier in the day.

BNP Paribas expects Japan’s GDP growth to slow to 0.5% in 2026 from 1.1% in 2025 as higher inflation and production costs weigh on activity. The Bank of Japan is projected to continue normalising policy, with a 25 bp hike in Q2 2026 and a terminal rate of 2.0% by end-2027.

Scotiabank analysts Shaun Osborne and Eric Theoret note that the Canadian Dollar (CAD) is steady against the US Dollar (USD) near 1.3800, with fair value for USD/CAD estimated at 1.3672. They highlight that technicals are showing a stalled rally near the 200-day moving average.

BNY reports that BoJ Deputy Governor Ryozo Himino signaled continued consideration of further rate hikes, with timing dependent on how Middle East conflict impacts Japan’s economy and inflation.

MUFG analysts argue that the Australian Dollar’s strong run versus the US Dollar is losing momentum. They highlight limited further upside for AUD/USD as global risk appetite cools, China slows and Reserve Bank of Australia (RBA) policy takes a backseat to rising US yields.

Brown Brothers Harriman's (BBH) Elias Haddad notes EUR/USD is consolidating above 1.1600 with resistance at 1.1682, near the 200-day moving average, as European Central Bank's (ECB) Schnabel signals a June rate hike.

Societe Generale analysts Kunal Kundu and Galvin Chia argue that India faces rising inflation and external risks as higher Oil prices and a weaker Rupee (INR) interact.

BNP Paribas expects the United Kingdom economy to slow in 2026, with growth at 0.7% after 1.4% in 2025 and renewed inflation pressures from the Iran conflict. Monetary policy is projected to tighten by 50 basis points in 2026, keeping 10-year gilt yields elevated.

BNY’s Bob Savage highlights that the New Zealand Dollar enters the upcoming RBNZ meeting on a weak footing, with a notable lack of recent flows and a large NZD outflow linked to unrolled swap positions.