Brown Brothers Harriman’s Elias Haddad reports that AUD/USD has retraced part of its US-Iran peace agreement rally after the Reserve Bank of Australia left rates unchanged at 4.35%.

MUFG’s Lee Hardman reports the Australian Dollar has weakened modestly after failing to reclaim the 0.7100 level and as the RBA unanimously left rates on hold at 4.35% following three hikes this year.

The Euro (EUR) holds a moderately positive tone against the US Dollar (USD) on Tuesday, with the EUR/USD pair returning to levels above 1.1600, following upbeat economic sentiment data in Germany and the Eurozone.

MUFG’s Lee Hardman notes the Japanese Yen is little changed after the BoJ’s widely anticipated 0.25% rate hike to 1.00%, with USD/JPY still trading just above 160.00. The BoJ also decided to pause its QE taper from FY2027, while continuing gradual JGB purchase reductions until then.

Eurozone ZEW Survey – Economic Sentiment came in at 9.5, above expectations (-7.2) in June

Eurozone Labor Cost Index below expectations (3.3%) in 1Q: Actual (3.2%)

Germany ZEW Survey – Current Situation registered at -81, below expectations (-77.5) in June

Germany ZEW Survey – Economic Sentiment registered at 10.5 above expectations (-6) in June

The New Zealand Dollar (NZD) posts marginal losses against the US Dollar (USD) on Tuesday, trading at 0.5820 after bouncing up from session lows at 0.5795.

According to UOB’s Quek Ser Leang, GBP/USD stalled just below key resistance at 1.3465 and closed near 1.3410, with intraday momentum indicators turning flat.

Societe Generale’s Kenneth Broux highlights that USD/CAD has broken above a key descending trendline and the upper boundary of a multi‑month base, signalling renewed upside momentum.

UOB’s Quek Ser Leang highlights that EUR/USD failed to sustain gains above 1.1620 and closed at 1.1590, with momentum slowing.

ING’s Francesco Pesole highlights that EUR/USD has returned to Friday’s levels, with markets prioritizing central bank dynamics over Oil. A wider EUR:USD swap differential contrasts with weaker Eurozone growth and a less dovish Fed, limiting bullish Euro positioning.

The British Pound (GBP) is trading practically flat against the US Dollar (USD) on Tuesday.

ING’s Chris Turner says the Bank of Japan’s 25 bp hike to 1.00% is no game-changer for the Japanese Yen, as policy remains accommodative and real rates stay comfortably negative.

The USD/JPY pair ticks down to near 160.25 during the European trading session on Tuesday. The pair trades marginally lower as the Japanese Yen (JPY) outperforms its peers, following the Bank of Japan’s (BoJ) monetary policy announcement.

The Australian Dollar (AUD) remains on its back foot against the US Dollar (USD) on Tuesday, although the pair has bounced up above 0.7050 after hitting session lows near 0.7040 following a monetary tightening pause by the Reserve Bank of Australia (RBA).

EUR/JPY depreciates after two days of gains, trading around 185.60 during the early European hours on Tuesday. The currency cross holds a mild bullish bias as it trades above the nine-day and 50-day Exponential Moving Averages (EMAs).

Rabobank’s Global Daily notes that the EU has formally launched accession talks with Ukraine and Moldova while simultaneously hardening its stance toward China.

The EUR/USD pair trades marginally lower at around 1.1580 during the European trading session on Tuesday. The major currency pair drops as the US Dollar (USD) rises, with investors awaiting the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.

NZD/USD extends its losses for the third consecutive day, trading around 0.5810 during the Asian hours on Tuesday. The pair depreciates as the US Dollar (USD) holds steady amid broad market caution.

Silver Price (XAG/USD) trades in negative territory around $69.85 during the early European trading hours on Tuesday. The white metal retreats from a weekly high as traders book some profits ahead of the US Federal Reserve (Fed) interest rate decision. 

The Indian Rupee (INR) opens firmly against the US Dollar (USD) on Tuesday.

AUD/USD pares its recent gains from the previous day, trading around 0.7050 during the Asian hours. The pair remains subdued as the Australian Dollar (AUD) struggles to shake off losses following the Reserve Bank of Australia’s (RBA) latest monetary policy update.

The Australian Dollar (AUD) falls back to near 1.2150 from its intraday high of 1.2168 against the New Zealand Dollar (NZD) after the Reserve Bank of Australia’s (RBA) monetary policy announcement.

USD/CHF gains ground after registering modest losses in the previous day, trading around 0.7950 during the Asian hours on Tuesday. The pair appreciates as the US Dollar (USD) holds steady amid broad market caution.

The Japanese Yen (JPY) surrenders some of its early gains against its major currency peers during the Asian trading session after the Bank of Japan’s (BoJ) monetary policy decision.

GBP/USD loses ground after registering minor gains in the previous day, trading around 1.3400 during the Asian hours on Tuesday. The pair inches lower as the US Dollar (USD) receives support from the market caution ahead of further developments regarding US-Iran peace talks.

The Australian Dollar (AUD) faces further selling pressure against its major currency peers during the Asian trading session on Tuesday, sliding 0.16% to near 0.7060 against the US Dollar (USD).

USD/CAD remains stronger for the fourth successive day, trading around 1.3990 during the Asian hours on Tuesday. The pair is holding its ground as the US Dollar (USD) stabilizes ahead of further developments regarding US-Iran peace talks.