The USD/CAD pair climbs to a nearly two-week high during the Asian session on Thursday, with bulls now looking to build on the positive momentum further beyond the 1.3900 mark.

The AUD/USD pair gathers strength to around 0.7135 during the early Asian session on Thursday. The Australian Dollar edges higher against the US Dollar (USD) following the domestic Trade Balance data. The US May Nonfarm Payrolls (NFP) report will take center stage later on Friday. 

The GBP/USD pair attracts some dip-buyers following the previous day's slide back closer to the weekly low and trades above the 1.3400 mark during the Asian session on Thursday.

Australia's Trade Balance shifted to surplus of 1,791M MoM in April, followed a deficit of 1,024M in the previous reading (revised from $1,841M), according to the latest foreign trade data published by the Australian Bureau of Statistics on Thursday.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Thursday at 6.8203 compared to the previous day's fix of 6.8184 and 6.7770 Reuters estimate.

The EUR/USD pair shows some resilience below the 1.1600 round figure and attracts some buyers during the Asian session on Thursday, reversing a part of the previous day's slide to the weekly through.

USD/JPY halts its four-day winning streak, trading around 159.90 during the Asian hours on Thursday. The pair depreciates as the US Dollar (USD) loses ground amid easing risk aversion following the news that Israel and Lebanon on Wednesday agreed to renew a ceasefire.

The Aussie Dollar drops some 0.70% on Wednesday as risk appetite shifted sour as hostilities in the Middle East resumed amid the lack of progress in US-Iran talks to reach a deal

The NZD/USD pair trades near the 0.5860 region on Thursday, down more than 1% in the day, as the US Dollar (USD) strengthens following hawkish remarks from Federal Reserve (Fed) officials.

The US Dollar Index (DXY) trades with a firmer tone near the 99.50 price region as a stronger-than-expected United States (US) ISM Services Purchasing Managers Index (PMI) rose to 54.5 in May from 53.6 in April, highlighting the resilience of the US economy and supporting Treasury yields.

Silver halts its advance and plunges over 2% on Wednesday amid growing speculation that a resumption of hostilities between the US and Iran—which exchanged fire overnight—increases the chances that major central banks will hike rates, a headwind for the non-yielding metal.

The Canadian Dollar (CAD) trades with a heavy tone against its American counterpart, as the US Dollar (USD) gathers strength from renewed Middle East concerns. The USD/CAD pair nears 1.3900, its highest in two months.

Scotiabank strategists Shaun Osborne and Eric Theoret note the Japanese Yen (JPY) is marginally stronger, with USD/JPY stabilizing just below the key 160 resistance area. They stress that intervention risk remains elevated as the pair approaches this psychologically important level.

NZD/USD falls to around 0.5870 on Wednesday at the time of writing, down 0.97% on the day. The pair extends its bearish move for a third consecutive day as investors favor the US Dollar (USD) amid escalating geopolitical tensions in the Middle East.

The USD/JPY pair is trading just below the 160.00 price level on Wednesday, as the US Dollar (USD) remains supported by stronger-than-expected economic data, while the Japanese Yen (JPY) struggles to attract sustained demand amid a cautious market mood.

EUR/USD ticks lower on Wednesday after closing the previous day virtually unchanged. The Euro (EUR) weakens as stronger-than-expected US economic data boosts demand for the US Dollar (USD), while renewed tensions in the Middle East further support the Greenback.

The Pound Sterling drops by 0.28% during the North American session as the US and Iran exchange attacks, while data in the US revealed that the labour market remains solid and that business activity expanded but is slowing.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that the British Pound (GBP) is trading fractionally lower against the Dollar, with limited fresh data beyond a slightly contractionary services PMI.

Brown Brothers Harriman’s (BBH) Elias Haddad reports that USD/JPY’s test of 160.00 has heightened intervention risks, with Japanese authorities already having spent a record amount to cap the pair near that level.

AUD/USD trades around 0.7145 on Wednesday at the time of writing, down 0.50% on the day. The pair remains under pressure after the release of several disappointing Australian economic indicators, while solid US data continues to support the US Dollar (USD).

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) remains soft but broadly stable, with USD/CAD trading near 1.3850.

MUFG’s Derek Halpenny notes that recent Ministry of Finance (MoF) and Bank of Japan (BoJ) intervention failed to prevent USD/JPY from returning to 160, as higher US yields and renewed Middle East tensions support the Dollar.

USD/CHF extends its advance on Wednesday as ongoing tensions in the Middle East and stronger-than-expected US labor data lift the US Dollar (USD). At the time of writing, the pair is trading around 0.7900, staying on the front foot for a third straight day.

GBP/JPY edges lower on Wednesday as fresh intervention warnings from Tokyo lift the Japanese Yen (JPY) across the board. At the time of writing, the cross trades around 214.82, down 0.25% on the day.

BNY’s Bob Savage highlights that USD/JPY remains close to 160.00 as markets price a high probability of a June BoJ rate hike, yet see Governor Ueda as insufficiently hawkish. Japanese authorities stress G7 agreement on limiting excessive FX volatility and pledge cooperation with the U.S.

Brazil Industrial Output (YoY) registered at 2.7% above expectations (1.7%) in April

Brazil Industrial Output (MoM) came in at 0.7%, above expectations (0.4%) in April

The Euro (EUR) resumed its downtrend against a stronger US Dollar (USD) on Wednesday, with bears testing support at the 1.1600 level.

Rabobank’s Senior FX Strategist Jane Foley discusses USD/JPY’s sharp pullback after comments from PM Takaichi and Bank of Japan (BoJ) Governor Ueda. Foley highlights renewed FX intervention risks, a still-firm US Dollar (USD) and speculation over a June BoJ rate hike.

Swiss National Bank (SNB) Chairman Martin Schlegel said during the European trading session on Wednesday that the central bank has increased its readiness to intervene in the Forex market.