S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- AUD/JPY recovers modestly to around 112.65 in Tuesday’s early European session.
- RBA lifted the Official Cash Rate to 4.35% from 4.1% at its May meeting on Tuesday.
- Traders remain on edge over the potential for Japanese authorities to step back into the market after last week’s intervention.
The AUD/JPY cross pares losses near 112.65 during the early European trading hours on Tuesday. The Australian Dollar (AUD) edges slightly higher after the Reserve Bank of Australia (RBA) interest rate decision. Traders await Governor Michele Bullock’s press conference at 04:30 GMT for fresh impetus.
As widely expected, the Australian central bank on Tuesday decided to raise the Official Cash Rate (OCR) by 25 basis points (bps) to 4.35% from 4.10% after concluding its May monetary policy meeting. According to the RBA Monetary Policy Statement, the central bank noted a significant increase in uncertainty over the domestic economic outlook and inflation.
The fallout from the Iran war will slash half a percentage point off economic growth in 2026 against the pre-conflict forecasts in February, as annual growth halves to 1.3% this year.
On the JPY’s front, markets remain on high alert following suspected interventions by Japanese authorities. Japanese Finance Minister Satsuki Katayama said Japan can take action against speculative foreign-exchange movements.
There was no official confirmation, but there were plenty of unofficial signals – including a “final warning” from a top official: the Ministry of Finance (MoF) and the Bank of Japan (BoJ) intervened in the foreign exchange market on Friday to strengthen the Japanese yen. The big question now is: How long will the JPY’s strength last?” said Commerzbank’s Thu Lan Nguyen.
