Katayama-Bessent Talks Trigger Mild USD/JPY Pullback, But Intervention Fears Stay Contained.As USD/JPY marched crept closer to 2024's 38-year highs, traders knew they were entering territory where Tokyo becomes increasingly uncomfortable. That sensitivity was evident when Japan's Finance Minister Satsuki Katayama revealed she had held talks with U.S. Treasury Secretary Scott Bessent.

New Zealand softens to near 0.5700 despite US-Iran peace progress.New Zealand softens to near 0.5700 despite US-Iran peace progress

Japan's Kihara says will take appropriate action against FX moves if needed.Japan's Kihara says will take appropriate action against FX moves if needed

Japan PMI Growth Accelerates as Manufacturing Boom Extends.Japan's private sector gained momentum in June, with the Flash Composite PMI Output Index rising from 51.1 to 52.5, the strongest reading since the outbreak of conflict in the Middle East. Growth was broad-based, with the Services PMI Business Activity Index improving from 50.0 to 51.8.

Australia Composite PMI Climbs Toward Growth, But Demand Remains Weak.Australia's private sector showed tentative signs of stabilization in June, with the S&P Global Flash Composite PMI Output Index rising from 48.7 to 49.8. The improvement was driven primarily by services, where the Business Activity Index increased from 48.7 to 49.9.

Dollar firms on hawkish Fed bets, oil rebound; yen near 40-year low.The U.S. dollar held firm on Tuesday as traders positioned for a more hawkish Federal Reserve and oil prices ​rebounded following steep losses, while the yen flirted with a four-decade low.

Fed's Goolsbee: Key Question Is Whether Inflation Stays at 3%-4%.Chicago Fed President Austan Goolsbee said the Federal Reserve's primary challenge is determining whether inflation currently running well above target will gradually recede or remain stuck at elevated levels. Speaking on the Marketplace radio program, Goolsbee noted that policymakers are grappling with “an inflation problem that's well above the target and has been going the wrong way.

US Dollar Bulls Charged Into FOMC, Yen Shorts Intensified | COT Report.USD bulls piled in ahead of the FOMC meeting while yen positioning became even more crowded, according to the latest COT repo.

Australia May CPI preview: fuel drag to mask sticky underlying inflation.The AUD and Australian rate futures will be sensitive to any upside surprise in the trimmed mean, which is the measure the RBA watches most closely for policy signals. All three banks broadly agree that the annual trimmed mean will edge higher in May, ranging from 3.5% to 3.6%, and a print above that range would reinforce the case for the RBA to hold rates at its next meeting or lean further toward a hike.

Brent Oil Prices Fall on Fresh Optimism Over Peace Talks.Brent price fell almost $4 on Monday, after initial fears of stalling peace talks that resulted in weekly opening with gap higher, was replaced by more optimistic tones from top US officials.

Euro moves little amid market caution on ongoing US-Iran talks.Euro moves little amid market caution on ongoing US-Iran talks

Japan PMI hits three-month high but input costs surge to near four-year peak.The input cost reading is the most market-sensitive element of this release for USD/JPY and JGB traders: inflation accelerating for a fifth consecutive month to its strongest since July 2022, driven explicitly by Middle East war-related energy and raw material costs, reinforces the BOJ's recent rate hike to 1% and keeps further tightening firmly on the table. The caveat that a meaningful portion of the demand strength reflects pre-emptive stock-building rather than genuine end-demand is important; it implies the headline composite figure overstates the underlying growth impulse and that activity could soften as warehouse capacity fills and cost pressures force purchasing managers to pull back.

Japan Jibun Bank Manufacturing PMI above expectations (54.5) in June: Actual (54.9).Japan Jibun Bank Manufacturing PMI above expectations (54.5) in June: Actual (54.9)

Japanese Yen flatlines near 161.50 as traders are on high alert for intervention.Japanese Yen flatlines near 161.50 as traders are on high alert for intervention

Australian Dollar slips below 0.7000 as Fed repricing lifts USD.Australian Dollar slips below 0.7000 as Fed repricing lifts USD