ForexLive Asia-Pacific FX news wrap: RBNZ hold/China CPI up/USD gain on Trump tariff tease

Forex Short News

The USD gained ground during the session, with USD/JPY notably climbing above 147.00. Trump again took to social media to discuss tariffs, saying he would release details on new tariffs targeting seven or more countries on Wednesday morning (U.S. time), with additional announcements expected in the afternoon.

A few events from the session are worth highlighting:

  • A private survey of U.S. oil inventories showed a large build, in stark contrast to the draw that had been expected. The official government data is due during U.S. hours—let’s see if the surprise is confirmed.
  • From China, June inflation data showed y/y CPI rising for the first time in five months, though only by 0.1%. Meanwhile, PPI deteriorated sharply, falling 3.6% y/y—its biggest drop since July 2023.
  • The Reserve Bank of New Zealand left its cash rate unchanged at 3.25%, as expected. In its statement, the RBNZ noted that if medium-term inflation pressures continue easing as projected, the policy committee anticipates further rate cuts. NZD/USD initially popped higher but later gave up gains as broader U.S. dollar strength returned.
  • The Wall Street Journal reported that Trump adviser Kevin Hassett is emerging as a serious contender for the next Federal Reserve Chair, having met with Trump twice in June to discuss the role.

In geopolitics:

  • The White House is considering sending another Patriot air defence system to Ukraine.

  • Taiwan launched its largest-ever military drills, underscoring growing tensions in the region.

This article was written by Eamonn Sheridan at www.forexlive.com.