The Australian Dollar (AUD) recovers its daily losses against the US Dollar (USD) as the risk sentiment improves, driven by Israel's revised proposal in hostage negotiations with Hamas, which could lead to a temporary ceasefire.
China’s May Retail Sales rose 6.4% year-over-year (YoY) vs. 5.0% expected and 5.1% in April, the latest data released by the National Bureau of Statistics (NBS) showed Monday.
EUR/USD extends its losses for the second successive session, trading around 1.1540 during the Asian hours on Monday. The pair depreciates as the US Dollar (USD) gains ground amid rising safe-haven demand as geopolitical tensions escalate in the Middle East.
On Monday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1789 as compared to Friday's fix of 7.1772 and 7.1854 Reuters estimate.
The Bank of Japan (BoJ) is considering reducing the pace of its Japanese government bond (JGB) tapering by half, beginning in April 2026, per the Japan News.
The GBP/USD pair remains on the defensive below a three-year top touched on Friday, though it lacks bearish conviction and oscillates in a narrow band around mid-1.3500s during the Asian session.
The Gold price (XAU/USD) attracts some buyers to near $3,445 during the early Asian session on Monday. The precious metal rises to over a one-month high due to escalating Middle East tensions and rising bets of a Federal Reserve (Fed) rate cut.
The Times of Israel reported on Sunday that Iran informed mediators Qatar and Oman that Tehran "will not negotiate while under attack," according to an official briefed on the negotiations, as Israel and Iran exchanged huge strikes.
The AUD/USD pair weakens to 0.6485 during the early Asian session on Monday. Escalating geopolitical tensions in the Middle East following an Israeli attack on Iran provide some support to the US Dollar (USD).
Iran launched a fresh attack on Israel late Sunday, with an explosion seen in the coastal city of Haifa. Israel began further attacks on military targets in Iran, despite international calls for diplomacy and de-escalation, per CNN.
US President Donald Trump said on Sunday that the United States will continue to support Israel, adding that he hopes there will be a deal between Iran and Israel but they have to fight it out.
As is usual for a Monday morning, market liquidity is very thin until it improves as more Asian centres come online ... prices are liable to swing around, so take care out there.
The USD/CHF ended Friday’s session with gains of over 0.04%, but in the week fell over 1.37% to a one-month low of 0.8054. At the time of writing, the pair trades at 0.8104 due to increased demand for the Dollar amid risk aversion.
WTI crude oil is surging amid escalating geopolitical tensions, with Israel’s recent strikes on Iran fueling a rally that pushed prices above the $74.00 handle on Friday.
The Canadian Dollar (CAD) caught yet another bid on Friday, climbing into new eight-month highs as the US Dollar (USD) holds in place and Crude Oil prices surge.
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