| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 01:30 | Australia | CPI, y/y | April | 2.4% | 2.3% | 2.4% |
| 02:00 | New Zealand | RBNZ Interest Rate Decision | | 3.50% | 3.25% | 3.25% |
| 06:45 | France | GDP, q/q | Quarter I | -0.1% | 0.1% | 0.1% |
| 06:45 | France | GDP, Y/Y | Quarter I | 0.8% | 0.8% | 0.6% |
During today's Asian trading, the US dollar rose moderately against major currencies, supported by encouraging economic data and signs of easing trade tensions. U.S. consumer confidence in May exceeded expectations, and Trump's decision to delay higher tariffs on EU goods provided further support to the greenback. However, other data showed a steep drop in capital goods orders in April, highlighting mixed signals in the U.S. economy. Investors are watching for the upcoming April Personal Consumption Expenditures (PCE) report - the Federal Reserve’s preferred inflation measure - for further insights into how trade policy might be impacting inflation and growth.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.18% to 99.78.
The Japanese yen held steady after a sharp 1% drop the previous day, triggered by reports that Japan might reduce issuance of super-long government bonds due to recent surges in yields. Investor focus remained on Japan’s fiscal outlook, especially after a lackluster auction of 40-year bonds, which saw the weakest demand since July. Concerns about rising public debt are not limited to Japan. In the U.S., Treasury yields are also elevated, reflecting broader market unease about growing deficits in developed economies. Still, market reactions were relatively calm on Wednesday. Analysts noted that weak bond demand underscores global anxiety about fiscal sustainability. Despite recent fluctuations, the yen has risen nearly 9% in 2025, boosted by a weaker U.S. dollar and safe-haven demand as investors pull back from American assets. The retreat is linked to market volatility under President Trump’s unpredictable trade policies, which have increased global uncertainty.
The New Zealand dollar rose 0.17% to $0.5962 after the Reserve Bank of New Zealand (RBNZ) lowered its benchmark interest rate by 25 basis points to 3.25%, signaling a slightly deeper easing cycle than previously expected. This marks the sixth consecutive cut since August 2024, bringing rates to their lowest level since 2022. The decision, passed by a 5–1 vote, reflects growing concerns about global risks, particularly those stemming from U.S. trade policy. Despite the easing path, officials remain cautious. “Future moves will depend on how global developments affect medium-term inflation,” said Governor Christian Hawkesby. Core inflation and wage growth are softening, and the economy continues to show spare capacity.