Market Roundup
• US JOLTS Job Openings (Apr): 7.618M, 6.860M forecast, 6.887M previous.
•US IBD/TIPP Economic Optimism (Jun): 42.5, 44.5 forecast, 42.6 previous.
• New Zealand GlobalDairyTrade Price Index: -0.6%, 0.6% previous.
• New Zealand Milk Auctions: 4,021.0, 4,198.0 previous.
Looking Ahead Economic Data (GMT)
•02:30 New Zealand ANZ Commodity Price Index (MoM): -0.8% previous.
•02:30 Australia Trade Balance (Apr): -A$1.61B forecast, -A$1.84B previous.
•02:30 Australia Exports (MoM) (Apr): -2.7% previous.
•02:30 Australia Imports (MoM) (Apr): 14.1% previous.
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euro edged lower on Tuesday investors awaited details on the status of U.S.-Iran peace talks amid conflicting news and digested Euro zone inflation data. U.S. President Donald Trump said on Monday that negotiations with Iran were continuing, helping push oil prices lower, despite reports that Tehran had suspended indirect talks with Washington aimed at ending the conflict.Euro zone inflation accelerated further last month, driven by energy and services, bolstering the already strong case for a small European Central Bank interest rate hike later this month, Eurostat data showed on Tuesday.Consumer prices in the 21 nations sharing the euro accelerated to 3.2% in May from 3.0% a month earlier, well above the ECB's 2% target but in line with a Reuters poll. The increase was driven by a 10.9% rise in energy costs and an unexpectedly large pickup in services inflation to 3.5% from 3.0%.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 traded in tight range on Tuesday as traders monitored developments surrounding a potential agreement to reopen the Strait of Hormuz.Reopening the Strait of Hormuz under a U.S.-Iran agreement could benefit oil-importing nations, easing pressure on the yen and euro, pound as energy market risks subside. President Trump said talks with Iran are continuing, but investors remain skeptical about the prospects for a lasting peace deal .Meanwhile, Bank of England Governor Andrew Bailey said it was important to bring British inflation back to target and give households confidence about the central bank's ability to do. British Prime Minister Keir Starmer faces a possible leadership challenge later this year if his main rival, Greater Manchester Mayor Andy Burnham, wins a seat in Parliament in a June 18 election. 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).
USD/CAD: The Canadian dollar lower against its U.S. counterpart on Tuesday as markets assessed the outlook for U.S.-Canada trade discussions..The United States-Mexico-Canada Agreement — known as CUSMA in Canada has shielded much of Canada's exports from U.S. tariffs. It is set for review by July 1.Canada proposed extending the North American trade pact by 16 years and called for parallel discussions on sectoral tariffs ahead of talks with U.S. negotiators.Data released Friday showed Canadian GDP shrank 0.1% annualized in Q1, extending the previous quarter's revised 1.0% contraction amid persistent trade uncertainty.Investors expect the BoC to leave its benchmark interest rate on hold at 2.25% for a fifth straight meeting next week, swap market data showed. Immediate resistance can be seen at 1.3860(38.2% fib), an upside break can trigger rise towards 1.3884(Higher BB).On the downside, immediate support is seen at 1.3783(50% fib), a break below could take the pair towards 1.3764 (SMA 20).
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
European markets moved higher as upbeat guidance from STMicroelectronics boosted the tech sector, with traders also assessing euro zone inflation figures amid ongoing Middle East tensions.
UK's benchmark FTSE 100 closed up by 0.33 percent, Germany's Dax ended up by 0.48 percent, France’s CAC finished the day up by 0.77percent.
The S&P 500 and Dow Jones Industrial Average closed modestly higher on Tuesday as strong investor enthusiasm surrounding artificial intelligence continued to support equities.
Dow Jones closed up by 0.45% percent, S&P 500 closed up by 0.13% percent, Nasdaq settled down by 0.03% percent.
Commodities Recap
Gold traded steady on Tuesday as investors monitored Middle East developments and awaited key U.S. economic data for clues on the Federal Reserve's policy outlook.
Spot gold was little changed at $4,486.32 per ounce as of 2:11 p.m. EDT (1811 GMT) after falling as much as 2% on Monday. U.S. gold futures settled 0.3% higher at $4,519.90.
Oil prices climbed about 1% to a one-week high in volatile trade on Tuesday as the market waited for news on the Iran war, with Tehran reviewing a proposed agreement with the U.S. to halt the conflict.
Brent futures rose $1.02, or 1.1%, to settle at $96.00 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.60, or 1.7%, to settle at $93.76.
