Market Roundup
•Australia Company Gross Operating Profits (Q1): -1.3%, 0.5% forecast, 5.9% previous.
•Australia Current Account (Q1): -A$27.1B, -A$23.1B forecast, -A$23.0B previous.
•Australia Building Approvals (MoM) (Apr): -3.4%, -1.5% forecast, -10.5% previous.
•Australia Net Exports Contribution (Q1): -0.8%, -0.1% previous.
•Australia Building Approvals (YoY) (Apr): 10.2%, 9.0% previous.
•Australia Business Inventories (Q1): 0.5%, -0.1% previous.
•Australia Company Profits Pre-Tax (Q1): -4.1%, 1.6% previous.
•Australia Private House Approvals (Apr): -1.0%, 0.5% previous.
Looking Ahead Economic Data (GMT)
•09:30 UK Mortgage Approvals (Apr): 62.00K forecast, 63.53K previous.
•09:30 UK M4 Money Supply (MoM) (Apr): 0.6% forecast, 0.8% previous.
•09:30 UK Mortgage Lending (Apr): £6.15B previous.
•09:30 UK BoE Consumer Credit (Apr): £1.700B forecast, £1.895B previous.
•09:30 UK M3 Money Supply (Apr): £3,270.1B previous.
•09:30 UK Net Lending to Individuals (Apr): £7.100B forecast, £8.000B previous.
•10:00 Eurozone CPI (MoM) (May): 1.0% previous.
•10:00 Eurozone Core CPI (YoY) (May): 2.4% forecast, 2.2% previous.
•10:00 Eurozone CPI, NSA (May): 103.04 previous.
•10:00 Eurozone HICP ex Energy & Food (YoY) (May): 2.1 previous.
•10:00 Eurozone Core CPI (MoM) (May): 0.9 previous.
•10:00 Eurozone HICP ex Energy & Food (MoM) (May): 0.8% previous.
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euroedged higher on Tuesday investors awaited details on the status of U.S.-Iran peace talks amid conflicting news.Investors have treated news of any progress toward ending the Iran conflict with caution, given the fragility of a U.S.–Iran ceasefire struck in early April.Investors are now awaiting the U.S. nonfarm payrolls and employment reports, both due later in the week, to assess resilience in the labour market amid mounting concerns about inflation due to the Middle East conflict.Also in focus are remarks from Federal Reserve policymakers, including Cleveland Fed President Beth Hammack and Fed Governor Michael Barr, to gauge the future monetary policy path..Immediate resistance can be seen at 1.1648(May 25th high), an upside break can trigger rise towards 1.1693(SMA 20).On the downside, immediate support is seen at 1.1577(23.6%fib), a break below could take the pair towards 1.1561(Lower BB).
GBP/USD: Sterling gained some ground on Tuesday as uncertainty surrounding U.S.-Iran negotiations kept investors cautious and discouraged aggressive positioning.Conflicting headlines on the status of Iran talks, coupled with concerns over a fragile ceasefire in Lebanon, weighed on overall market sentiment and limited appetite for risk assets. Market participants will closely watch comments from Andrew Bailey when he appears before the House of Lords Economic Affairs Committee on Tuesday.Bailey has previously indicated there is no need for the Bank of England to react hastily to recent inflation pressures, suggesting policymakers remain comfortable with a measured approach. Immediate resistance can be seen at 1.3505(SMA 20), an upside break can trigger rise towards 1.3526(50%fib).On the downside, immediate support is seen at 1.3488(Daily low), a break below could take the pair towards1.3382(61.8%fib).
AUD/USD: Australian traded in narrow range on Tuesday as uncertainty over the U.S.–Iran standoff kept markets in a holding pattern.Mixed signals around Iran negotiations persisted, with reports alternating between stalled and continuing peace discussions, keeping risk sentiment fragile.RBA board member Harper flagged concerns that persistent inflation could remain sticky, reinforcing a cautious policy stance.Australia’s 4.75% minimum wage increase is expected to add to domestic inflation pressures, potentially complicating the RBA’s disinflation path.The Q1 current account showed a A$27.1bn deficit, wider than the Reuters poll consensus of -A$23.2bn, highlighting ongoing external imbalances.RBA Governor Bullock and Deputy Governor Kent are scheduled to appear before a Senate Committee on Wednesday, where markets will look for any shift in tone on inflation and policy outlook. Immediate resistance can be seen at 0.7170(38.2%fib), an upside break can trigger rise towards 0.7189(SMA 20).On the downside, immediate support is seen at 0.7104(Lower BB), a break below could take the pair towards 0.7088(50%fib).
USD/JPY: The U.S. dollar edged higher against yen on Tuesday but gains were limited as risk of Japanese authorities intervening in the foreign exchange limited upside.Finance Minister Satsuki Katayama said on Tuesday the authorities stood ready to respond in the currency market as needed and refrained from commenting on recent exchange-rate moves.Japan spent 11.7 trillion yen since April to support the yen in what was the largest-ever intervention round in a month in terms of size. The yen jumped to around 155 per dollar from 160.725, but later resumed its decline. Markets are now focused on a speech by Bank of Japan Governor Kazuo Ueda on Wednesday for possible clues on whether a rate hike could follow later this month.The BOJ kept interest rates steady in April, but strongly signalled the chance of a near-term hike due to mounting inflationary pressures. Immediate resistance can be seen at 159.74(Daily high) an upside break can trigger rise towards 160.00(Psychological level) .On the downside, immediate support is seen at 158.23(SMA 20) a break below could take the pair towards 157.78(50%fib ).
Equities Recap
Asian stocks found their footing in unsteady trading on Tuesday as investors shrugged off doubts about the durability of a Middle East ceasefire to return to favoured AI plays.
Japan’s Nikkei 225 was down by 0.49% , Hang Seng was up at 2.09%, China A50 was up at 2.09%
Commodities Recap
Gold prices rose on Tuesday, supported by lower Treasury yields and a partial ceasefire between Hezbollah and Israel, while investors awaited details on the status of U.S.-Iran peace talks amid conflicting news.
Spot gold rose 0.8% to $4,517.73 per ounce by 0556 GMT. U.S. gold futures for August delivery gained 0.9% to $4,547.80.
Oil prices trended lower on Tuesday following the previous session's sharp gains as the market remained cautious about progress in U.S.-Iran peace talks.
Brent crude futures lost 53 cents, or 0.56%, to $94.45 a barrel at 0649 GMT, while U.S. West Texas Intermediate fell 56 cents, or 0.61%, to $91.60 a barrel.
