Makro

TD Securities strategists Prashant Newnaha and Alex Loo highlight that the Reserve Bank of Australia (RBA) raised the cash rate to 4.35% with a dovish message, viewing risks to inflation and growth as more balanced.

Gold (XAU/USD) steadies on Tuesday but lacks upside momentum as higher-for-longer interest rate expectations rise following renewed escalation in the Middle East, which continues to fuel energy-driven inflation concerns.

The Euro (EUR) trades lower for the third consecutive day against the US Dollar (USD) on Tuesday.

USD/CHF trades around 0.7830 on Tuesday, down slightly by 0.07% on the day.

ING’s Chris Turner notes that the US Dollar (USD) is benefiting from a hawkish Federal Reserve (Fed) narrative as markets price in a small amount of additional tightening for 2026. He highlights that high Oil prices and Gulf tensions are keeping short-dated US rates supported.

Commerzbank’s Volkmar Baur notes that the Reserve Bank of Australia (RBA) has raised rates for the third time this year to 4.35%, prioritizing inflation expectations and second‑round risks over softer March Consumer Price Index (CPI).

The AUD/USD pair declines to near 0.7145 during the early European trading hours on Tuesday. The Australian Dollar (AUD) remains weak despite a widely expected 25 basis point (bps) interest rate hike by the Reserve Bank of Australia (RBA).

EUR/JPY extends its losses for the second consecutive day, trading around 183.80 during the Asian hours on Tuesday. The currency cross weakens as the Japanese Yen (JPY) stabilizes against major peers amid cautious trading, following suspected intervention by Japanese authorities last week.

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.

USD/CHF holds ground for the third consecutive day, trading around 0.7840 during the Asian hours on Tuesday. The Swiss Federal Statistical Office is set to release the April Consumer Price Index (CPI) data later in the day.