OCBC’s Christopher Wong describes USD/PHP as bearish but oversold after a sharp gap lower on softer yields and Oil. With inflation still above target and growth slowing, Bangko Sentral ng Pilipinas (BSP) faces a difficult decision, where a firmer policy response could support PHP.

Societe Generale’s Stephen Spratt notes that the Reserve Bank of Australia kept rates unchanged at 4.35%, in line with expectations, and characterizes the statement as largely a mark-to-market update.

United States (US) President Donald Trump said during the European trading session on Tuesday that psychologically, we want to get Iran’s enriched uranium.

German ZEW Survey - Economic Sentiment turns positive to 10.5 in June after remaining negative in May. The data was expected to come in better at -6.0 from the previous reading of -10.2.

Societe Generale’s Jin Kenzaki and team say the Bank of Japan’s hike to 1.0% marks only the bottom of the neutral range, but new language on upside inflation risks supports further normalisation.

OCBC’s Christopher Wong says recent surprise hikes and FX measures from Bank Indonesia have restored some confidence in the Rupiah.

Italy Consumer Price Index (EU Norm) (YoY) below expectations (3.3%) in May: Actual (3.2%)

Italy Consumer Price Index (YoY) meets forecasts (3.2%) in May

Italy Consumer Price Index (MoM) meets forecasts (0.4%) in May

Italy Consumer Price Index (EU Norm) (MoM) came in at 0.3%, below expectations (0.4%) in May

ING’s Francesco Pesole notes that the Reserve Bank of Australia delivered a hawkish hold, stressing that inflation remains too high and further rate hikes are possible.

TradingKey - O Federal Reserve deve anunciar sua decisão de política monetária nesta quarta-feira, que também marcará a primeira reunião de definição de juros presidida pelo novo presidente, Kevin War

USD/IDR extends its losses for the second successive day, trading around 17,720 during the European hours on Tuesday. The pair loses ground as the US Dollar (USD) pares its daily gains despite prevailing market caution.

The British Pound (GBP) is facing compounding pressures ahead of the Bank of England (BoE) interest-rate decision on Thursday. Financial markets have pushed back expectations for rate hikes to later in the year, leaving the currency highly sensitive to incoming economic data and geopolitics.

BNY strategists John Velis and David Tam preview the upcoming FOMC meeting under new Chair Kevin Warsh, expecting slightly hawkish changes to the statement and dot plot.

Japan Finance Minister (FM) Satsuki Katayama said during the European trading session on Tuesday that the government is focused on appropriately conducting economic and fiscal policies.

Australia RBA Interest Rate Decision meets forecasts (4.35%)

The AUD/JPY cross loses traction to around 113.20 during the Asian trading hours on Tuesday. The Japanese Yen (JPY) edges higher against the Australian Dollar (AUD) following the Bank of Japan (BoJ) interest rate decision.

USD/JPY depreciates after two days of gains, trading around 160.10 during the Asian hours on Tuesday. The pair remains subdued as the Japanese Yen (JPY) holds ground following the release of the interest rate decision by the Bank of Japan (BoJ).

Japan BoJ Interest Rate Decision in line with expectations (1%)

South Korea Money Supply Growth increased to 8.1% in April from previous 7.2%

The NZD/USD pair loses momentum to around 0.5810 during the Asian trading hours on Tuesday. The New Zealand Dollar (NZD) weakens against the US Dollar (USD) following the Chinese economic data. All eyes will be on the US Federal Reserve (Fed) interest rate decision later on Wednesday. 

China’s Retail Sales fell 0.6% year-over-year (YoY) in May vs. 0% expected and 0.2% in April, the latest data released by the National Bureau of Statistics (NBS) showed Tuesday.

China Fixed Asset Investment (YTD) (YoY) registered at -4.1%, below expectations (-2%) in May

China Industrial Production (YoY) came in at 4.5%, above expectations (4.3%) in May

China Retail Sales (YoY) came in at -0.6%, below expectations (0%) in May

China House Price Index remains unchanged at -3.5% in May

On Tuesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8108 compared to the previous day's fix of 6.8088 and 6.7605 Reuters estimate.

West Texas Intermediate (WTI) oil price inches higher after registering 3.7% losses in the previous day, trading around $80.10 per barrel during the Asian hours on Tuesday.

US President Donald Trump said that Iran agreed not to ever have a nuclear weapon, the Guardian reported on Tuesday.