EUR/USD
The EUR/USD pair holds positive ground around 1.1795 during the early Asian session on Tuesday. The US Dollar (USD) weakens against the Euro (EUR) amid US tariff uncertainty. The release of the US January Producer Price Index (PPI) report will be in the spotlight later on Friday.
GBP/USD
GBP/USD edges lower after two days of gains, trading around 1.3480 during the Asian hours on Tuesday. The pair declines as the US Dollar (USD) rebounds from losses recorded over the previous two sessions. Traders will focus on the US ADP Employment Change four-week average later in the day, along with speeches from Federal Reserve officials.
USD/JPY
The USD/JPY pair is up 0.4% to near 155.30 during the late Asian trading session on Tuesday. The pair trades higher as the US Dollar (USD) extends its recovery move despite United States (US) President Donald Trump threatening higher tariffs on countries in case they dishonour trade agreements.
AUD/USD
The Reserve Bank of Australia (RBA) raised its cash rate by 25 basis points to 3.85% earlier this month, citing a material pick-up in inflation and stronger-than-expected private demand. Wednesday’s January CPI release will be the first major test of the RBA’s hawkish position, with the previous reading showing headline inflation running at 3.8% and the trimmed mean at 3.3%, both above the 2% to 3% target band. Tuesday’s People’s Bank of China (PBoC) decision is widely expected to hold rates steady, and while it could shift broader Asia-Pacific flows, the consensus for no change limits its near-term impact on the Australian Dollar (AUD). The tariff backdrop has shifted significantly after the US Supreme Court struck down Trump’s sweeping International Emergency Economic Powers Act (IEEPA) tariffs last Friday in a 6-3 decision, prompting the President to threaten a new 15% global tariff under Section 122 of the Trade Act, effective Tuesday. RBA Governor Bullock’s speech on Wednesday and a string of Federal Reserve speakers round out a busy calendar that could reshape rate expectations on both sides of the pair.
NZD/USD
The RBNZ’s dovish hold last week weighed heavily on the New Zealand Dollar, with the central bank signaling that monetary policy would remain accommodative for some time and that a rate hike later in 2026 is possible but not fully priced in. Market pricing for a hike by year-end was sharply trimmed, with only one increase now favoured, down from two before the decision, and a September move now carrying just a 40% probability. On the US side, the Supreme Court’s 6-3 ruling on Friday struck down the administration’s IEEPA tariffs, prompting Trump to threaten to impose a new 15% global tariff under Section 122 of the Trade Act, to become effective in the coming months. The shift from IEEPA to Section 122 authority introduces fresh trade uncertainty, though the 150-day statutory limit on the new tariffs and the prospect of over $160 billion in importer refunds could act as a partial offset for risk sentiment. Federal Reserve (Fed) speakers dominate Tuesday’s US calendar, while Wednesday brings the Australian CPI release, which could spill over into Kiwi crosses.
USD/CAD
USD/CAD trades around 1.3665 on Monday at the time of writing, virtually unchanged on the day. The pair is attempting to stabilize following last week’s late pullback from a monthly high, but it remains below the psychological 1.3700 threshold.
USD/CHF
The USD/CHF pair ticks up to near 0.7760 during the Asian trading session on Tuesday. The Swiss Franc edges higher as the US Dollar (USD) extends late Monday’s recovery move, which was driven by the expectation that uncertainty inspired by the United States (US) Supreme Court’s (SC) ruling against President Donald Trump’s tariff policy would be short-lived.
CRUDE OIL
Oil prices rose on Tuesday, nearing seven-month highs, with traders assessing geopolitical risks ahead of another round of U.S.-Iran nuclear talks, while U.S. trade policy uncertainty added to broader concerns.
Gold (XAU/USD) retreats sharply from the $5,250 level, or a fresh monthly peak touched during the Asian session, and for now, seems to have snapped a four-day winning streak. Following the previous day’s knee-jerk fall in reaction to US President Donald Trump’s new global tariffs and the subsequent bounce, the US Dollar (USD) attracts fresh buyers in the wake of the US Federal Reserve’s (Fed) hawkish outlook. This, in turn, is seen as a key factor exerting downward pressure on the commodity.
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