AUD/USD trades higher near 0.6915 on Tuesday as investors digest the latest Reserve Bank of Australia (RBA) Meeting Minutes and a modest improvement in United States (US) Consumer Confidence.

USD/JPY trades around 162.65 at the time of writing, up 0.44% on the day, and remains close to its highest level in several decades.

The Euro (EUR) stages a rebound against the US Dollar (USD) on Tuesday as month-end repositioning weighs modestly on the Greenback, limiting support from upbeat US economic data. At the time of writing, EUR/USD trades around 1.1415 after hitting an intraday low of 1.1382.

The Pound Sterling advances 0.11% on Tuesday, even though UK data showed the economy is slowing, while the latest US jobs report showed that the number of vacancies rose in May, according to the US Bureau of Labour Statistics. The GBP/USD trades at 1.3270.

Silver (XAG/USD) edges higher on Tuesday as the US Dollar (USD) trims part of its intraday gains despite upbeat US economic data. At the time of writing, XAG/USD trades around $59.70, up nearly 2.5% on the day.

Scotiabank’s FX strategists report that EUR/USD is softer as regional inflation data point to downside risks for national CPI, even as ECB President Lagarde signals that more tightening could come. Swaps price modest additional tightening by September.

USD/CAD trims its intraday gains on Tuesday as the Canadian Dollar (CAD) strengthens after the latest Canadian Gross Domestic Product (GDP) data surprised to the upside. At the time of writing, the pair trades around 1.4203 after hitting an intraday high of 1.4247.

TD Securities strategists argue that recent improvements in Canadian growth data justify a more constructive view on the Canadian Dollar (CAD).

ING’s Chris Turner notes that USD/JPY has broken above its 2024 highs near 162, reaching levels last seen in the 1980s, with traders focused on potential Bank of Japan (BoJ) action.

EUR/JPY trades modestly higher on Tuesday, hovering around 185.10 at the time of writing, up 0.07% on the day. The pair is supported by a resilient Euro (EUR) despite softer-than-expected German inflation data.

Societe Generale strategists note that USD/INR is trading in a tight range, with robust foreign portfolio inflows into Indian debt and supportive domestic factors offset by a hawkish Federal Reserve (Fed) stance.

GBP/JPY trades in a narrow range on Tuesday, struggling to build on the previous day's gains as traders remain wary of a possible intervention by Japanese authorities after the Japanese Yen (JPY) weakened to a fresh 40-year low against the US Dollar (USD).

Germany Consumer Price Index (YoY) came in at 2.3% below forecasts (2.5%) in June

Germany Harmonized Index of Consumer Prices (MoM) below expectations (0.1%) in June: Actual (-0.2%)

Germany Harmonized Index of Consumer Prices (YoY) below forecasts (2.6%) in June: Actual (2.4%)

Germany Consumer Price Index (MoM) registered at -0.3%, below expectations (0%) in June

The Swiss Franc (CHF) trades lower against the US Dollar (USD) as the latter outperforms amid firm expectations that the Federal Reserve (Fed) will raise interest rates at least once this year.

AUD/USD trades around 0.6890 on Tuesday, holding steady on the day as investors digest the latest Reserve Bank of Australia (RBA) monetary policy meeting Minutes while remaining cautious ahead of key US labor market data.

BNP Paribas strategists highlight that despite weaker post-Covid productivity than the United States (US), the European Union retains stronger public finances and growing international use of the Euro (EUR).

The Euro (EUR) is down against its major currency peers, trading 0.17% lower to near 1.1400 against the US Dollar (USD) during the European trading session on Tuesday.

The US Bureau of Labor Statistics will release the Job Openings and Labor Turnover Survey (JOLTS) for May on Tuesday at 14:00 GMT.

Commerzbank FX analyst Michael Pfister examines why higher Brazilian interest rate expectations tend to weaken the Brazilian Real (BRL) rather than support it.

Rabobank's Senior FX Strategist Jane Foley discusses British Pound (GBP) performance around United Kingdom (UK) political developments, focusing on potential leadership by Burnham and adherence to existing fiscal rules.

NZD/USD gains ground for the second successive day, trading around 0.5650 during the European hours on Tuesday. The New Zealand Dollar (NZD) maintains its upward momentum, drawing strong support from a sharp rebound in domestic sentiment.

The USD/JPY pair sticks to a bullish bias for the second consecutive day and trades around the 162.30 region during the first half of the European session, near a four-decade high touched earlier this Tuesday.

The Japanese Yen (JPY) has decisively breached long-standing four-decade technical resistance, climbing past 162.00 to reach values not seen since 1986.

The British Pound (GBP) is giving away previous gains against the US Dollar (USD) on Tuesday, weighed by the downward revision of the UK’s Q1 Gross Domestic Product (GDP) data.

USD/CAD remains stronger for the second successive day, hovering around 1.4230 during the European session on Tuesday. The currency pair steadies as the US Dollar (USD) strengthens on growing expectations of a hawkish Federal Reserve interest rate path.

The USD/CHF pair sticks to its modest intraday gains through the first half of the European session on Tuesday, with bulls now awaiting a sustained strength above the 0.8100 mark before placing fresh bets.

MUFG’s Lee Hardman notes that USD/JPY has broken above its July 2024 high as the US Dollar strengthens on a hawkish Federal Reserve backdrop.