Economic pessimism has set in – but there are reasons for Australians to be hopeful 
RBA Minutes Signal Australia Central Bank Remains Ready to Raise Interest Rates if Inflation Persists 
Gold Price Hits Annual Low as Fed Rate Hike Bets and Sticky Inflation Weigh on Bullion 
Asian Stocks End Strong Quarter as Dollar Surges, Yen Hits 40-Year Low Ahead of US Jobs Data 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
Global Financial Firms Shift Asia Expansion Focus to South Korea as China, India Face Caution 
China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
Dollar Slips Ahead of Key U.S. Jobs Data as Fed Rate Outlook, ECB, and Iran Talks Shape Forex Markets 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Trump Urges Gasoline Retailers to Cut Prices to $2.50 Per Gallon, Warns of Legal Action 
China Factory PMI Seen Returning to Growth in June as AI Export Demand Supports Economy 
Asian currencies strengthened on Monday while the U.S. dollar edged lower, as investors shifted focus to upcoming policy meetings by the Bank of Japan (BOJ) and the Federal Reserve. Market sentiment remained cautious due to ongoing geopolitical tensions in the Middle East, particularly after the United States and Iran withdrew from talks over the weekend.
The Japanese yen showed modest gains, with the USD/JPY pair slipping below the key 160 level. The BOJ is widely expected to keep interest rates unchanged at 0.75%, although speculation persists around a possible 25 basis point hike. Investors are closely watching for a hawkish tone from the central bank, especially as inflation remains elevated and external pressures linked to the Iran conflict persist. However, if the BOJ adopts a softer stance than anticipated, the yen could face renewed pressure after recent volatility.
Meanwhile, the U.S. dollar index dipped slightly in Asian trading after strong gains last week. The dollar had been supported by safe-haven demand amid geopolitical risks and expectations of tighter global monetary policy. Attention now turns to the Federal Reserve’s upcoming meeting, where rates are also expected to remain unchanged. Uncertainty surrounding the economic impact of the Iran conflict continues to influence policy outlooks. Additionally, speculation over leadership changes at the Fed, including the potential confirmation of Kevin Warsh as chair, has added another layer of market interest.
Broader Asian foreign exchange markets saw gains as risk appetite improved slightly. Comments from U.S. President Donald Trump indicating openness to renewed negotiations with Iran provided some relief. Reports suggesting Iran may propose reopening the Strait of Hormuz also contributed to cautious optimism, despite unresolved nuclear issues.
The Australian dollar advanced on expectations of strong inflation data, which could support further rate hikes by the Reserve Bank of Australia. The Chinese yuan remained near a three-year high ahead of key PMI data, while the South Korean won and Singapore dollar also strengthened. In contrast, the Indian rupee weakened, with USD/INR moving above 94.
