Market Analysis

NZD/USD is trying to stabilise as the RBNZ signals possible rate hikes, but weaker New Zealand manufacturing, high unemployment pressure, and a still-supported U.S. dollar are limiting the kiwi’s recovery.

AUD/JPY remains supported by Australia’s high cash rate and yen weakness, but soft Australian growth, weaker consumer sentiment, BOJ rate-hike expectations, and Japan’s intervention risk are making the upside less straightforward.

EUR/GBP is under pressure as sterling strengthens on improved risk sentiment and Bank of England inflation concerns, but expectations for an ECB rate hike and sticky eurozone inflation are limiting the pair’s downside.

GBP/USD remains under pressure as strong U.S. jobs data and rising Fed hike expectations keep the dollar firm, while slower UK wage growth and softer inflation reduce the pound’s rate-support advantage.

USD/CAD remains elevated after strong U.S. payrolls boosted Fed rate-hike expectations, while Canada’s stronger-than-expected jobs report and higher oil prices helped limit Canadian dollar losses.

AUD/USD is under pressure as Australia’s soft GDP growth, weaker household spending, and slowing housing market reduce the strength of the RBA rate-support story, while Gulf tensions and U.S. jobs-data caution keep the dollar supported.

EUR/USD remains supported by expectations that the ECB will raise rates in June, but renewed Gulf tensions, higher oil prices, and sticky U.S. inflation risks are keeping the dollar firm and limiting euro upside.

USD/JPY is back near the 160 intervention zone as Gulf tensions support the U.S. dollar and Japan’s low-yield currency remains under pressure. However, growing expectations for a June BOJ rate hike and fresh warnings from Tokyo are making further upside more fragile.

GBP/USD is holding near recent levels as UK manufacturing price pressure keeps the Bank of England cautious, but weak business activity, softer inflation expectations, and a steady U.S. dollar are limiting the pound’s upside.