The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.80 during the Asian trading hours on Friday. The DXY gathers strength amid uncertainty in the Middle East and a hot US inflation report.

The AUD/USD pair loses momentum to around 0.7030 during the Asian trading hours on Friday. The US Dollar (USD) strengthens against the Australian Dollar (AUD) after US wholesale prices rose more than expected in May.

Japan’s Finance Minister Satsuki Katayama said on Friday that the Bank of Japan’s (BoJ) monetary policy meeting on June 15-16 will proceed as planned despite Governor Kazuo Ueda’s absence. Ueda is in the hospital with an infected liver cyst.

The USD/JPY pair gains traction to near 160.25 during the early Asian session on Friday. Hotter-than-expected US Producer Price Index (PPI) data provides some support to the US Dollar (USD) against the Japanese Yen (JPY).

New Zealand Business NZ PMI down to 49.9 in May from previous 50.5

United States (US) President Donald Trump said on Thursday that he has canceled planned military strikes against Iran as negotiators are close to reach an agreement on the final elements of a deal." The documents are pretty final shape, so we'll see," he said during an event at the Oval Office.

Commerzbank analysts report that USD/CNY is trading near 6.78, with their model implying a slightly stronger PBoC fixing versus the previous day. The Yuan is being influenced by China’s decision to tap domestic oil reserves rather than bid aggressively in global markets.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a mildly positive stance on USD/SGD, looking for a test of 1.2900 in the near term while seeing 1.2915 as a tougher hurdle. On a 1–3 week horizon, they maintain that gains remain intact as long as 1.2830 holds.

Argentina Consumer Price Index (MoM) registered at 2.1%, below expectations (2.3%) in May

Standard Chartered economists Hunter Chan and Shuang Ding assess China’s May data as showing solid production but softer demand. They expect Industrial Production growth to partially recover from April’s slump, supported by strong exports and high-tech manufacturing.

Commerzbank highlights that South Korean authorities have intensified FX monitoring to stabilize the Korean Won, including more frequent reviews of banks’ FX positions and joint inspections with the Bank of Korea. USD/KRW is consolidating around 1,520 after touching its highest level since 2009.

MUFG’s Lloyd Chan argues that the Thai Baht is particularly exposed to prolonged Middle East conflict and elevated Oil prices. Thailand’s large net Oil and gas deficit, weakening terms of trade and relatively low domestic yields undermine the currency’s appeal.

United States 30-Year Bond Auction dipped from previous 5.046% to 5.02%

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a neutral stance on USD/CNH, expecting intraday consolidation between 6.7760 and 6.7880 after recent directionless trading. On a 1–3 week horizon, the pair is seen holding a broader 6.7620–6.7980 range.

Commerzbank notes that USD/TWD has risen for five consecutive sessions to 31.68, driven by foreign equity outflows as global tech stocks correct. Taiwan’s exports and imports are surging on AI-related demand, while CPI has moved above the central bank’s 2% target.

Standard Chartered economists Hunter Chan and Shuang Ding argue that higher Oil and AI-related goods prices have lifted China’s import prices and PPI, ending a multi-year deflation spell.

United States 4-Week Bill Auction: 3.595% vs previous 3.615%

ING’s Min Joo Kang expects the Bank of Japan to deliver a 25bp rate hike in June, supported by resilient growth, negative real rates and upside inflation risks. Despite soft May inflation, underlying pressures and firm wages justify further normalisation.

Nomura analysts Josie Anderson, George Buckley, Andrzej Szczepaniak and David Seif expect the SNB to keep its policy rate at 0.00% at the 18 June meeting. They highlight low Swiss inflation, mixed activity data and ongoing Iran war uncertainty.

United States EIA Natural Gas Storage Change registered at 108B above expectations (101B) in June 5

ING’s James Smith highlights a softer UK backdrop than in 2022, with vacancies falling, unemployment rising and wage growth slowing, while firms and workers have limited pricing and bargaining power. He judges that the Bank of England (BoE) is torn between a prolonged pause and a symbolic move.

Nordea’s Jan von Gerich and Tuuli Koivu note that the European Central Bank (ECB) raised rates by 25bp and signalled readiness to tighten further as inflation stays above target.

Christine Lagarde, President of the European Central Bank (ECB), explains the ECB's decision to raise key rates by 25 basis points at the June policy meeting and responds to questions from the press.

Deutsche Bank’s Sanjay Raja expects UK headline CPI to edge up to 3.01% year-on-year in May, with core CPI at 2.72% and Services CPI at 3.65%. The bank projects CPI to average 3.1% this year before easing to 2.6% next year and 2.3% in 2028, with risks to inflation seen skewed to the upside.

TD Securities’ Prashant Newnaha and Howard Du argue recent weak Australian data and Federal Budget tax changes should keep the RBA cash rate at 4.35% next week and likely on hold for longer.

Christine Lagarde, President of the European Central Bank (ECB), explains the ECB's decision to raise key rates by 25 basis points at the June policy meeting and responds to questions from the press.

Russia Central Bank Reserves $ climbed from previous $748.7B to $749.7B

Russia Foreign Trade dipped from previous $13.966B to $11.431B in April

Christine Lagarde, President of the European Central Bank (ECB), explains the ECB's decision to raise key rates by 25 basis points at the June policy meeting and responds to questions from the press.

ING’s Warren Patterson notes that weaker Chinese crude imports and strong US exports have temporarily eased pressure on Oil, but he stresses these supports are not sustainable. China’s May 2026 crude imports fell sharply, while higher US exports are being drawn from inventories.