Forex News
- Gold price falls to near $4,465 in Wednesday’s early Asian session.
- Ongoing tensions in the Middle East weigh on the Gold price.
- The US employment data for May will be closely watched later on Friday.
Gold price (XAU/USD) tumbles to around $4,465 during the early Asian session on Wednesday. The precious metal extends the decline amid uncertainty surrounding the peace deal between the United States (US) and Iran.
Iran reportedly threatened to completely withdraw from peace talks on Monday over Israel's attacks in Lebanon. US President Donald Trump secured a renewed ceasefire between Israel and Hezbollah, going on to insist that talks with Iran remain active.
Meanwhile, US Secretary of State Marco Rubio said on Tuesday that the US will not remove sanctions on Iran in exchange for a full reopening of the Strait of Hormuz, adding that any sanctions relief is conditioned on Iran giving up enriched uranium.
“The optimism surrounding negotiations between the US and Iran aimed at ending the standoff in the Strait of Hormuz faded over the weekend,” said Ricardo Evangelista, ActivTrades analyst. “As a result, energy prices rebounded, reviving inflation concerns and reinforcing hawkish Federal Reserve expectations,” he added.
Traders brace for the US employment data for May, which is due later on Friday. The report could help sway the US Federal Reserve’s (Fed) policy path in the near term. The data are expected to show a gain of 85,000 jobs in May and no change in the current 4.3% Unemployment Rate. Any signs of weakening in the US labour market could weigh on the US Dollar (USD) and support the USD-denominated commodity price in the near term.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
- GBP/JPY holds uptrend as buyers defend 215.00 support zone.
- Break above 216.00 exposes YTD high at 216.60.
- Drop below 215.00 targets 214.68 and key SMA confluence.
The Pound Sterling advances versus the Japanese Yen on Tuesday, up by 0.24%, driven by traders’ optimism about a US-Iran deal, even though there are rumours that Iran has halted negotiations amid the Israel-Hezbollah conflict over the weekend. The GBP/JPY trades at 215.34 after bouncing off daily lows of 214.74.
GBP/JPY Price Forecast: Technical outlook
From a technical standpoint, the GBP/JPY uptrend remains intact, but as the USD/JPY pair closes into the 160.00 area, the possibility of an intervention by the Bank of Japan (BoJ) increases.
If not for the BoJ, the GBP/JPY could resume its advance and test the 216.00 figure, followed by the yearly peak at 216.60 hit on April 30. A breach of the latter, and there’s nothing in the way for buyers to drive the cross-pair towards the 220.00 mark.
On the flip side, the first support for GBP/JPY is at 215.00. Once hurdled, the next stop would be the May 25 daily high turned support at 214.68, ahead of the confluence of the 20- and 50-day Simple Moving Averages (SMAs), each at 213.76/68, respectively.
GBP/JPY Price Chart – Daily
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.04% | -0.05% | 0.19% | -0.01% | -0.28% | 0.10% | 0.15% | |
| EUR | -0.04% | -0.09% | 0.13% | -0.07% | -0.32% | 0.07% | 0.09% | |
| GBP | 0.05% | 0.09% | 0.22% | 0.02% | -0.19% | 0.18% | 0.15% | |
| JPY | -0.19% | -0.13% | -0.22% | -0.20% | -0.44% | -0.08% | -0.07% | |
| CAD | 0.01% | 0.07% | -0.02% | 0.20% | -0.25% | 0.12% | 0.12% | |
| AUD | 0.28% | 0.32% | 0.19% | 0.44% | 0.25% | 0.36% | 0.36% | |
| NZD | -0.10% | -0.07% | -0.18% | 0.08% | -0.12% | -0.36% | -0.01% | |
| CHF | -0.15% | -0.09% | -0.15% | 0.07% | -0.12% | -0.36% | 0.00% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
The final reading of Australia's S&P Global Services PMI came in at 48.7 in May, compared to 50.7 in the previous reading, the latest data published by S&P Global showed on Wednesday. This figure came in better than the estimates of 47.7. Meanwhile, the Composite PMI was revised to 48.7 in May versus 50.4 prior, above the consensus of 47.8.
The Australian Dollar (AUD) edges slightly lower following the final reading of Australia's Services PMI data for May. The services Business Activity Index registered the second contraction in three months amid market uncertainty and higher prices linked to the Middle East conflict. However, the AUD/USD pair holds positive ground near 0.7175, still marginally up from Monday’s closing price at 0.7157.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.06% | -0.04% | 0.19% | -0.01% | -0.24% | 0.15% | 0.19% | |
| EUR | -0.06% | -0.09% | 0.13% | -0.08% | -0.30% | 0.10% | 0.11% | |
| GBP | 0.04% | 0.09% | 0.22% | 0.02% | -0.17% | 0.21% | 0.18% | |
| JPY | -0.19% | -0.13% | -0.22% | -0.20% | -0.42% | -0.04% | -0.04% | |
| CAD | 0.00% | 0.08% | -0.02% | 0.20% | -0.23% | 0.16% | 0.15% | |
| AUD | 0.24% | 0.30% | 0.17% | 0.42% | 0.23% | 0.37% | 0.36% | |
| NZD | -0.15% | -0.10% | -0.21% | 0.04% | -0.16% | -0.37% | -0.02% | |
| CHF | -0.19% | -0.11% | -0.18% | 0.04% | -0.15% | -0.36% | 0.02% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
What do Australia’s S&P Global Services PMI data mean for the Australian Dollar?
Australia’s Services PMI is a leading indicator gauging business activity in Australia’s services sector. The stronger-than-expected figure is seen bullish on the Australian Dollar (AUD).
When a PMI reading lands firmly above the 50.0 expansion line or significantly beats market forecasts, it signals a robust, accelerating domestic economy. Strong economic momentum could reinforce the Reserve Bank of Australia (RBA) to hike the interest rate.
Lately, traders have reduced their bets of further rate hikes from the RBA. Financial markets have dialed back rate hike expectations, pricing in a 95% probability that the Australian central bank will hold the Official Cash Rate (OCR) steady at its June policy meeting, according to the ASX RBA Rate Tracker.
Technical Analysis: AUD/USD keeps the bullish vibe
AUD/USD trades at 0.7175 in the daily chart, keeping a constructive bullish bias as spot holds well above the 100-day exponential moving average (EMA). The pair is consolidating near recent highs, and the Relative Strength Index (RSI) around 52 suggests mildly positive but not overstretched momentum, hinting that buyers retain control while leaving room for further upside attempts.
On the downside, immediate support is located at the 0.7175 area as an intraday pivot, with stronger technical demand emerging at the 100-day EMA near 0.7035, where the broader upswing would be expected to stabilize on deeper pullbacks. As long as AUD/USD defends these underlying supports, the near-term technical structure favors dips being bought rather than a sustained reversal lower.
(The technical analysis of this story was written with the help of an AI tool.)
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
UOB’s Ho Woei Chen notes that China’s May PMIs point to softer 2Q26 GDP growth, with manufacturing hovering at the expansion threshold and services rebounding only modestly. The economist expects China’s GDP to slow to 4.7% year-on-year in 2Q26 from 5.0% in 1Q26, keeping the full-year 2026 growth forecast at 4.7%. Policy is seen staying calibrated.
PMI signals softer but stable growth
"In sum, the latest PMIs indicate that China's manufacturing sector is holding at the expansion threshold but losing momentum, due to softer external demand and Middle East-related cost pressures."
"The services rebound offers some offset, but domestic demand remains the key vulnerability requiring policy attention."
"May PMI data reinforced the slowdown evident in Apr’s broader macro indicators."
"We expect China’s GDP growth to moderate to 4.7% y/y in 2Q26 from 5.0% y/y in 1Q26 with the full-year outlook at 4.7%."
"Unless further evidence suggests that growth could slow below the official target of 4.5%-5.0%, we think policy responses will remain calibrated and incremental."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
BNY's Bob Savage notes that most MENA (Middle East and North Africa) currencies saw net selling in May after a brief April respite, with fixed income also underperforming. Rising global inflation expectations and higher United States (US) rate expectations are weighing on frontier market FX, while capital inflows into Gulf economies and Egypt could slow further if Dollar cash yields rise. Only Jordanian Dinar (JOD) was modestly net bought.
Carry unwinds and weaker safe haven story
"If April was a month of relief for MENA assets, that story did not continue in May: the bulk of currencies in the region were net sold, and fixed income continued to underperform."
"May was also a difficult month for frontier markets, as it brought a marked rise in global inflation expectations driven by the conflict."
"Energy prices are not a solid buffer, and the region’s currencies have been caught up in sustained carry unwinding."
"Ultimately, only JOD ended the month net bought, and the levels were mediocre at best."
"Meanwhile, the new “regional safe haven” narrative for OMR was severely curtailed, especially as geopolitical developments began to drive flow interest in addition to geographical advantages."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- US JOLTS Job Openings jumped to 7.618 million in April, the highest level since May 2024.
- Stronger US labor-market data supported the US Dollar and reduced expectations for Fed rate cuts.
- Markets remain mainly driven by US labor market figures.
The NZD/USD pair trades near the 0.5930 region on Wednesday as the United States (US) Dollar (USD) strengthens following upbeat labor-market data, while investors remain cautious ahead of upcoming economic releases from New Zealand. At the time of writing, the pair declines around 0.15%.
The latest Job Openings and Labor Turnover Survey (JOLTS) showed US job openings surged to 7.618 million in April from a revised 6.887 million in March, well above market expectations of 6.88 million. The reading marked the highest level since May 2024 and reinforced confidence in the resilience of the US labor market.
With no major New Zealand data released during the session, NZD/USD remains mainly driven by US labor-market figures, Treasury yields, and broader demand for the Greenback.
Short-term technical analysis:
On the four-hour chart, NZD/USD trades at 0.5923, maintaining a capped tone as it holds above the 100-period Simple Moving Average (SMA) at 0.5896 but remains below the 20-period SMA at 0.5950 and nearby horizontal barriers. Immediate pressure is reinforced by a fading Relative Strength Index (RSI) around 47, which hints that bullish momentum has cooled after the recent rejection from overbought territory.
On the topside, initial resistance is aligned at 0.5926, with a stronger barrier at 0.5937 and the 20-period SMA at 0.5950 forming a broader supply zone. On the downside, first support is seen at 0.5922, followed by 0.5918; a break there would expose the 100-period SMA support near 0.5896.
(The technical analysis of this story was written with the help of an AI tool.)
UOB’s Quek Ser Leang and Lee Sue Ann highlight that USD/CNH was little changed on Monday around 6.7652, but the underlying tone has softened. They expect the pair to drift lower intraday within 6.7595–6.7690 rather than stage a sharp decline. Over coming weeks, their negative view persists, with scope for a move toward 6.7500 unless 6.7800 strong resistance is breached.
Soft tone points to gradual CNH strength
"24-HOUR VIEW: Yesterday, USD traded between 6.7627 and 6.7708, closing largely unchanged at 6.7652 (+0.01%). Despite the relatively quiet price action, the underlying tone has softened. That said, this is likely to lead to USD drifting lower within a range of 6.7595/6.7690 rather than a sustained decline."
"1-3 WEEKS VIEW: Tracking our negative USD view from early last week, in our previous update from last Friday (29 May, spot at 6.7740), we highlighted that “downward momentum remains mild, but there is room for USD to decline further to 6.7620.” USD subsequently edged to a low of 6.7605. Downward momentum remains mild, but the decline has not stabilised. Overall, only a breach of 6.7800 (‘strong resistance’ previously at 6.7900) would indicate that the decline has stabilised. Until then, USD could continue to edge lower. The next level to watch is 6.7500."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Forex Market News
Our dedicated focus on forex news and insights empowers you to capitalise on investment opportunities in the dynamic FX market. The forex landscape is ever-evolving, characterised by continuous exchange rate fluctuations shaped by vast influential factors. From economic data releases to geopolitical developments, these events can sway market sentiment and drive substantial movements in currency valuations.
At Rakuten Securities Hong Kong, we prioritise delivering timely and accurate forex news updates sourced from reputable platforms like FXStreet. This ensures you stay informed about crucial market developments, enabling informed decision-making and proactive strategy adjustments. Whether you’re monitoring forex forecasts, analysing trading perspectives, or seeking to capitalise on emerging trends, our comprehensive approach equips you with the insights needed to navigate the FX market effectively.
Stay ahead with our comprehensive forex news coverage, designed to keep you informed and prepared to seize profitable opportunities in the dynamic world of forex trading.
