Trading news

The Indian Rupee (INR) weakens on Tuesday. Consumer inflation in India fell more than expected to a near six-year low in April, strengthening bets that the Reserve Bank of India (RBI) is due to extend its rate cutting cycle. This, in turn, undermines the Indian currency.

NZD/USD edges lower during Tuesday’s Asian session, trading around 0.5920 after climbing over 0.50% in the previous session. The pair remained under pressure following the People's Bank of China's (PBoC) latest interest rate decision.

The Japanese (JPY) weakens across the board on Tuesday, assisting the USD/JPY pair to reverse the previous day's slide to over a one-week low and climb back to mid-145.00s during the Asian session.

The Australian Dollar (AUD) is losing further ground across its major rivals, undermined by the latest political turmoil in Australia. However, traders remain cautious ahead of the Reserve Bank of Australia (RBA) policy announcement due later at 4.30 GMT.

The Australian Dollar (AUD) dips against the US Dollar (USD) on Tuesday, following a gain of over 0.50% in the previous session. The AUD/USD pair remains under pressure after the People's Bank of China (PBoC) announced its Interest Rate Decision.

Japan’s Finance Minister Shunichi Kato said on Tuesday that he expects any talks with US Treasury Secretary Scott Bessent this week to be based on this understanding of foreign exchange.

The People’s Bank of China (PBOC), China's central bank, announced a cut in its Loan Prime Rates (LPRs) on Tuesday. The one-year LPR was cut from 3.1% to 3.00%, while the five-year LPR was cut from 3.60% to  3.50%. 

The Gold price (XAU/USD) edges lower to around $3,230 during the early Asian session on Tuesday, pressured by a modest US Dollar (USD) rebound. However, the concerns over the US economic health after Moody's downgrades the US national credit rating might cap its downside. 

The People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead on Tuesday at 7.1931 as compared to the previous day's fix of 7.1916 and 7.2112 Reuters estimate.

China PBoC Interest Rate Decision meets forecasts (3%)

China on Monday accused the US of undermining the two countries’ preliminary trade agreement after the US issued an industry warning against using Chinese chips that singled out Huawei, per CNBC. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.10 during the Asian trading hours on Tuesday. The WTI price edges higher on signs of a breakdown in US negotiations with Iran over its nuclear program, while Moody's downgrades the US national credit rating.

EUR/USD tested into the high end on Monday, drifting briefly toward the 1.1300 handle before settling back slightly, although the pair still ended the day higher overall. However, Fiber remains trapped in a near-term consolidation zone.

The USD/CAD pair softens to near 1.3950 during the early Asian session on Tuesday. The Greenback edges lower against the Canadian Dollar (CAD) on a surprise downgrade of the US government's credit rating late on Friday and renewed trade tensions.

US President Donald Trump added further comments on Monday to his earlier statements about impending Russia-Ukraine ceasefire talks.

GBP/USD rose at the outset of the new trading week, briefly testing the 1.3400 handle for the second time in two weeks. Despite an early bullish push in cable bids, buyers couldn’t lock in a fresh high, and price action trimmed back to a more sedate 1.3350.

The Reserve Bank of Australia (RBA) is set to lower the Official Cash Rate (OCR) by 25 basis points (bps) to 3.85% from 4.1% after concluding its May monetary policy meeting on Tuesday. The decision will be announced at 04:30 GMT.

The AUD/JPY rallied on Monday, gaining over 0.30% as traders brace for the Reserve Bank of Australia (RBA) monetary policy decision. Nevertheless, news that the People's Bank of China (PBoC) might reduce rates and improve risk appetite, as the central bank takes measures to propel China’s economy.

The AUD/NZD pair is trading near the 1.09 zone on Monday, reflecting a cautiously bullish tone as the market approaches the Asian session.

Silver price registers modest gains of 0.20% on Monday as US Treasury bond yields edge lower and the US dollar loses ground, as depicted by the US Dollar Index (DXY). The XAG/USD trades at $32.33 after bouncing off daily lows of $32.24.