The AUD/JPY pair trades 0.3% higher to near 106.46 during the European trading session on Tuesday. The pair jumps higher as the Japanese Yen (JPY) underperforms its peers amid uncertainty surrounding Japan’s political outlook.

USD is likely to continue to rise; the level to watch is 158.90, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

New Zealand Dollar (NZD) could rise further; overbought conditions could limit any gains to a test of 0.5785. In the longer run, for the time being, NZD is likely to trade in a range between 0.5720 and 0.5805, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Speculation that Prime Minister Takaichi may call a snap election has pushed Japanese government bond yields higher and sent the yen weaker, driving USD/JPY back toward 159.

Australian Dollar (AUD) is likely to trade in a range of 0.6685/0.6730. In the longer run, the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The USD/JPY pair revisits its one-and-a-half-year high of 159.00 during the European trading session on Tuesday.

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EUR/JPY trades around 185.50 on Tuesday at the time of writing, up 0.50% on the day, extending its upward move for a third consecutive session, hitting a new multi-year high at 185.54 earlier in the day.

The US Dollar has found support at 0.7955, after retreating from highs near 0.8020 against the Swiss Franc on Monday.

The AUD/USD pair trades marginally lower to near 0.6700 during the European trading session on Tuesday. The Aussie pair edges down as the US Dollar (USD) ticks higher slightly ahead of the United States (US) Consumer Price Index (CPI) data for December, which will be published at 13:30 GMT.

The Pound Sterling (GBP) holds onto Monday’s gains around 1.3470 against the US Dollar (USD) during the European trading session on Tuesday. The GBP/USD pair trades firmly ahead of the United States (US) Consumer Price Index (CPI) data for December, which will be published at 13:30 GMT.

EUR/USD is trading practically flat, near 1.1650 at the time of writing on Tuesday, after pulling back from the 1.1700 area.

Silver price (XAG/USD) remains steady, slightly below record highs, trading around $85.20 per troy ounce during the European hours on Tuesday.

The USD/CAD pair lacks any firm intraday directional bias and oscillates in a narrow band below the 1.3900 mark heading into the European session on Tuesday.

The NZD/USD pair trades on a firmer note near 0.5770 during the early European trading hours on Tuesday. The US Dollar (USD) remains under selling pressure against the New Zealand Dollar (NZD) amid renewed concerns over the Federal Reserve’s (Fed) independence.

The GBP/USD pair edges higher to near 1.3470 during the early European session on Tuesday.

The GBP/JPY cross builds on the previous day's breakout momentum through a nearly three-week-old range and gains follow-through positive traction for the third consecutive day on Tuesday.

The EUR/GBP pair trades in a tight range around 0.8650 during the European trading session on Tuesday. The pair consolidates while investors gauge fresh cues about how monetary policy policies by the Bank of England (BoE) and the European Central Bank (ECB) will flair in the near term.

The EUR/JPY cross trades in positive territory for the third consecutive day near 185.20 during the early European session on Tuesday.

USD/CHF loses ground for the second successive day, trading around 0.7970 during the Asian hours on Tuesday. The pair depreciates as the Swiss Franc (CHF) receives support from safe-haven demand amid geopolitical tensions and concerns over Federal Reserve (Fed) independence.

The Indian Rupee (INR) opens lower against the US Dollar (USD) on Tuesday at around 90.52, ahead of trade talks between the United States (US) and India during the day.

EUR/USD edges lower after registering modest gains in the previous session, trading around 1.1660 during the Asian hours on Monday. The 14-day Relative Strength Index (RSI) momentum indicator at 42.69 sits below the 50 midline and is easing, confirming a bearish tilt.

Silver price ( XAG/USD) holds positive ground around $85.75 during the early European session on Tuesday. The white metal is set to retest a record high as traders pile into safe-haven metals amid renewed concerns over the US Federal Reserve (Fed) and its independence.

NZD/USD gains ground for the second successive session, trading around 0.5780 during the Asian hours on Tuesday.

The AUD/JPY cross attracts some follow-through buying for the third consecutive day and climbs to a fresh high since July 2024, around the 106.50-106.55 region, during the Asian session on Tuesday.

The Japanese Yen (JPY) continues its relative underperformance amid speculation that Prime Minister Sanae Takaichi may soon call a snap election to take advantage of strong approval ratings.

USD/CAD remains subdued for the second successive session, trading around 1.3870 during the Asian hours on Tuesday.

The Australian Dollar strengthens against the US Dollar on Tuesday despite Australia’s Westpac Consumer Confidence falling 1.7% month-over-month (MoM) in January to a three-month low of 92.9, extending December’s sharp 9.0% drop amid shifting rate expectations.

The GBP/USD pair edges higher for the second straight day on Tuesday and looks to build on the previous day's recovery from the 1.3390 region, or a three-week low. Spot prices currently trade around the 1.3475 region, up nearly 0.10% for the day.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Tuesday at 7.0103 compared to the previous day's fix of 7.0108 and 6.9734 Reuters estimate.