ING’s Chris Turner reports that the Reserve Bank of Australia kept rates at 4.35%, while Governor Sandra Bullock delivered a hawkish message, stressing upside inflation risks and revealing that a hike was discussed. Short-dated Australian yields reversed higher.

EUR/USD fluctuates on Tuesday, holding within the range seen over the past week. At the time of writing, the pair trades around 1.1546, virtually unchanged on the day.

Chris Turner at ING observes that EUR/USD realised volatility continues to decline, with one-year volatility matching lows from November 2024.

USD/JPY treads water on Tuesday as the Japanese Yen (JPY) struggles to find its footing, facing headwinds from a firmer US Dollar (USD) and elevated Oil prices. At the time of writing, the pair trades around 159.24 after hitting an intraday low of 158.92.

Brown Brothers Harriman’s (BBH) Elias Haddad reports the Reserve Bank of Australia (RBA) delivered a less hawkish hold, keeping rates at 4.35% and judging policy “somewhat restrictive” as the labor market has eased more than expected.

The Swiss Franc trades practically flat against the US Dollar (USD) on Tuesday, consolidating halfway through last week’s trading range.

The GBP/USD pair trades marginally lower at around 1.3500 during the European trading session on Tuesday.

HSBC strategists discuss the sharp post-intervention drop following coordinated action by Japan’s Ministry of Finance and the US Treasury. They argue that joint intervention is more effective than unilateral moves but unlikely to change the broader trend without improved Japanese fundamentals.

EUR/USD trades around 1.1535 on Tuesday at the time of writing, posting a modest 0.06% decline on the day.

The New Zealand Dollar (NZD) nudges lower against a firmer US Dollar (USD) for the second consecutive day on Tuesday, as doubts about the fate of the US-Iran peace negotiations hurt market confidence and boost Oil prices higher.

Rabobank's Senior Macro Strategist Bas van Geffen reports that the Australian Dollar (AUD) slipped briefly after the RBA left its policy rate unchanged, as markets interpreted the statement and downgraded growth and inflation forecasts as dovish.

The Australian Dollar (AUD) attracts bids against its major currency peers after the Reserve Bank of Australia’s (RBA) monetary policy decision, but is still trading marginally lower at around 0.7050 against the US Dollar (USD) during the European trading session on Tuesday.

USD/CAD trades around 1.3935 on Tuesday at the time of writing, virtually unchanged on the day with a modest 0.03% decline.

The GBP/JPY cross recovers a modest intraday dip and climbs above the 215.00 psychological mark during the first half of the European session on Tuesday.

Societe Generale strategists note the Japanese Yen (JPY) remains the main G10 laggard despite higher domestic yields and Bank of Japan (BoJ) tightening.

The Euro (EUR) extends losses for the second consecutive day against the British Pound (GBP) on Tuesday, weighed by a cautious market mood as hopes of a swift end to Iran’s war wane and Oil prices climb. The EUR USD pair remains capped below 0.8550 after hitting two-week lows at 0.8536 on Monday.

NZD/USD extends its losses for the second successive day, trading around 0.5880 during the European hours on Tuesday. The pair depreciates as the US Dollar (USD) gains on increased safe-haven demand amid heightened geopolitical tensions.

The USD/JPY pair reverses an intraday dip to sub-159.00 levels and climbs to the top end of its daily range during the early part of the European session on Tuesday.

Silver (XAG/USD) trades lower on Tuesday, retreating to levels below $64.50, after rejection at seven-week highs around $66.60 on Monday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that GBP/USD extended last week’s rally, but overbought conditions should confine intraday moves to a 1.3490–1.3535 band.

USD/CHF extends its gains for the second successive day, trading around 0.8110 during the early European hours on Tuesday. The currency pair has pushed higher as the US Dollar (USD) erased its intraday losses, fueled by a sharp rally in crude oil driven by heightened geopolitical tensions.

OCBC’s Sim Moh Siong and Christopher Wong highlight that Japan’s recent FX intervention, backed by United States (US) involvement, has not fully reversed Japanese Yen (JPY) weakness, with USD/JPY near 159 after retracing much of its post-intervention drop.

The GBP/USD pair seesaws between tepid gains and minor losses through the early European session on Tuesday, though it remains close to the highest level since July 16 set the previous day.

The Euro (EUR) nudges lower against the US Dollar (USD) on Tuesday, weighed by the stalemate in the US-Iran negotiations and higher oil prices, which put additional pressure on the crude-importing eurozone economies.

Commerzbank’s Volkmar Baur reports that the Reserve Bank of Australia (RBA) left interest rates unchanged in a unanimous decision, with forecasts showing higher unemployment and lower short-term inflation.

The Australian Dollar (AUD) has reacted with moderate declines against the US Dollar (USD) following Reserve Bank of Australia Governor Michelle Bullock's speech on Tuesday.

The Indian Rupee (INR) opens on a cautious note against the US Dollar (USD) on Tuesday. The USD/INR pair rises further to near 95.40 as surging oil prices due to escalating fears of a prolonged global supply disruption have weakened the Indian currency.

The AUD/USD pair slides below mid-0.7000s after the Reserve Bank of Australia (RBA) announced its policy decision, though it lacks follow-through.

The Australian Dollar (AUD) faces selling pressure against its major currency peers, trading 0.15% lower at around 112.20 against the Japanese Yen (JPY) during the Asian trading session on Tuesday.

EUR/JPY depreciates after registering modest gains in the previous day, trading around 183.80 during the Asian hours on Tuesday. The Relative Strength Index (14) at 47.63 sits just below the neutral 50 line, hinting at ongoing bearish momentum without yet reaching oversold conditions.