OCBC’s FX Strategist Christopher Wong highlights that Asian FX has seen a modest stabilisation after an oil- and rates-led sell-off, helped by softer Brent and a pause in United States (US) yield gains.

Danske Research Team observes that equities moved lower on US tech underperformance and a defensive rotation, though most sectors ended higher and VIX declined.

Commerzbank’s Antje Praefcke notes that rising Oil prices linked to renewed Middle East tensions are lifting US inflation and pushing back expectations for Fed rate cuts, with markets even contemplating a hike by mid‑2027.

According to the Islamic Republic News Agency (IRNA), Iran's deputy foreign minister said on Tuesday that lifting sanctions, releasing frozen funds, and ending the United States (US) blockade are major demands included in Iran's recent proposal to the US.

United Kingdom Claimant Count Rate unchanged at 4.4% in April

The United Kingdom’s (UK) ILO Unemployment Rate rose to 5.0% in the three months to March after reporting 4.9% in the previous reading, data published by the Office for National Statistics (ONS) showed on Tuesday.

United Kingdom Employment Change (3M) climbed from previous 25K to 148K in March

United Kingdom ILO Unemployment Rate (3M) registered at 5% above expectations (4.9%) in March

United Kingdom Claimant Count Change came in at 26.5K below forecasts (27.3K) in April

United Kingdom Average Earnings Excluding Bonus (3Mo/Yr) meets expectations (3.4%) in March

United Kingdom Average Earnings Including Bonus (3Mo/Yr) registered at 4.1% above expectations (3.8%) in March

The AUD/JPY cross attracts some sellers to around 113.45 during the early European session on Tuesday. The Japanese Yen (JPY) strengthens against the Australian Dollar (AUD) following Japan’s upbeat Gross Domestic Product (GDP) report.

Japan Tertiary Industry Index (MoM) came in at -0.2%, above forecasts (-0.4%) in March

Japan Industrial Production (YoY) increased to 2.4% in March from previous 2.3%

Japan Capacity Utilization dipped from previous -0.1% to -1.2% in March

Japan Industrial Production (MoM) came in at -0.4%, above expectations (-0.5%) in March

The GBP/USD pair loses ground to near 1.3415 during the Asian trading hours on Tuesday. The British Pound (GBP) edges lower against the Greenback amid UK political turmoil. Traders will take more cues from the UK employment report, which is due later on Tuesday. 

Japan's Economy Minister, Minoru Kiuchi, said on Tuesday that the government will respond swiftly while monitoring the economic impact of the Middle East conflict and price hikes on households and businesses.

The Reserve Bank of Australia (RBA) published the Minutes of its May monetary policy meeting this Tuesday, which showed that eight members saw case for rate hike as strongest and one member preferred to await further data. 

Australia Westpac Consumer Confidence rose from previous -12.5% to 83% in May

Japan Gross Domestic Product Deflator (YoY) above expectations (3.1%) in 1Q: Actual (3.4%)

The Japanese economy expanded 0.5% over the quarter in the first quarter (Q1) of 2026, the preliminary report published by the Cabinet Office showed on Tuesday. This reading followed a 0.3% growth recorded in Q4 of 2025 and beat market expectations of a 0.4% expansion.

Japan Gross Domestic Product (QoQ) registered at 0.5% above expectations (0.4%) in 1Q

Japan Gross Domestic Product Annualized above expectations (1.7%) in 1Q: Actual (2.1%)

Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter said that the central bank is worried higher energy costs will feed through to consumer prices quickly given the stretched state of the domestic economy, potentially creating a ‌significant shift in inflation expectations, Reuters repor

New Zealand Producer Price Index - Output (QoQ) above expectations (0.5%) in 1Q: Actual (0.8%)

New Zealand Electronic Card Retail Sales (YoY): 2% (April) vs previous 2.7%

New Zealand Electronic Card Retail Sales (MoM) fell from previous 0.7% to -1.3% in April

New Zealand Producer Price Index - Input (QoQ) came in at 1.4%, above forecasts (0.8%) in 1Q

United Overseas Bank’s Quek Ser Leang notes that USD/SGD has rebounded from its recent low near 1.2660 and upward momentum is starting to build. The pair is seen as broadly supported above 1.2735, with major support at 1.2660.