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Asia Roundup : Dollar slips against yen as geopolitical tensions and tariff jitters lift safe-haven demand, Asian shares fall,Gold climb, Oil jumps - June 2nd,2025

Posted at 02 June 2025 / Categories Market Roundups


Market Roundup

• Japan au Jibun Bank Manufacturing PMI (May)   49.4 ,49.0forecast, 48.7 previous

•Australia ANZ Job Advertisements (MoM) (May) -1.2%    , -0.3%  previous

•Australia MI Inflation Gauge (MoM) (May) -0.4%, 0.6% previous            

Looking Ahead Economic Data(GMT)

• 08:30 UK BoE Consumer Credit (Apr)   1.100B forecast,0.875B previous               

• 08:30 UK M3 Money Supply (Apr) 3,129.5B previous                   

• 08:30 UK M4 Money Supply (MoM) (Apr) 0.2% forecast,  0.3% previous   

• 08:30 UK S&P Global Manufacturing PMI (May) 45.1 forecast,45.4 previous                     

• 08:30 UK Mortgage Approvals (Apr)     65.00K forecast, 64.31K previous             

• 08:30 UK Mortgage Lending (Apr) -0.50B forecast,12.96B previous       

Looking Ahead Events And Other Releases(GMT)

•No Events Ahead

Currency Forecast

EUR/USD: The euro strengthened against dollar on Monday  as greenback weakened  at the start of week after Trump said late on Friday that he plans to double duties on imported steel and aluminum to 50% from Wednesday, and as Beijing hit back against accusations it violated an agreement on critical minerals shipments. The U.S. currency has been whipsawed for weeks by Trump's on-again-off-again trade war, falling when a flare up in tensions stokes worries of a potential U.S. recession. Last week, the greenback got a bit of respite, rising 0.3% after talks with the European Union got back on track and a U.S. trade court blocked the bulk of Trump's tariffs on the grounds that he overstepped his authority. The euro   gained 0.70% to $1.1428.Immediate resistance can be seen at 1.1445(38.2%fib), an upside break can trigger rise towards 1.1496(Higher BB).On the downside, immediate support is seen at 1.1304(50%fib), a break below could take the pair towards 1.1173(61.8%fib).

GBP/USD: The British pound strengthened on Monday as the US dollar weakened, following U.S. President Donald Trump’s announcement to double tariffs on imported steel and aluminum to 50%, effective Wednesday. This move reignited fears of a broader trade war, especially with China, dampening market sentiment. Trump’s Friday announcement came hours after accusing China of violating a critical minerals trade agreement. On Sunday, Treasury Secretary Scott Bessent said Trump plans to speak soon with Chinese President Xi Jinping to resolve the dispute. However, Beijing strongly rejected Trump’s criticism, indicating that the call may not happen soon .Immediate resistance can be seen at 1.3558(23.6%fib), an upside break can trigger rise towards 1.3588(Higher BB).On the downside, immediate support is seen at 1.3393(38.2%fib), a break below could take the pair towards 1.3257(50%fib).

AUD/USD: The Australian dollar firmed on Monday  as greenback weakened as global trade tensions escalated following U.S. President Donald Trump’s announcement of plans to double tariffs on imported steel and aluminum, stoking fears of a renewed trade war, particularly with China. President Trump on Friday threatened to double steel and aluminum tariffs to 50%, accusing China of breaking Geneva trade agreements. Looking ahead, Australia will release Q1 GDP data on Wednesday, with forecasts of a 0.4% quarterly rise and 1.5% annual growth, up from 1.3%. The Reserve Bank of Australia will release minutes from its May meeting on Tuesday. Last month, it cut interest rates to a two-year low and signaled possible further easing due to slowing inflation and global trade risks. The Australian dollar added 0.87% to $0.6488.The U.S. dollar index, which measures the currency against six major peers, eased 0.76% to 98.68. Immediate resistance can be seen at 0.6498(Higher BB), an upside break can trigger rise towards 0.6515(23.6%fib).On the downside, immediate support is seen at 0.6414(38.2%fib), a break below could take the pair towards 0.6375(Lower BB).

 USD/JPY: The The U.S. dollar weakened against the Japanese yen on Monday as rising geopolitical tensions and trade uncertainties boosted demand for the safe-haven yen. President Trump announced plans to double tariffs on imported steel and aluminum from 25% to 50%, escalating the trade war. Markets are closely monitoring whether the tariff increase will go ahead this Wednesday. Meanwhile, fighting intensified between Ukraine and Russia ahead of their second peace talks in Istanbul, with Ukraine launching a major strike and Russia carrying out an overnight drone attack. The dollar dropped 0.79% to 142.88 yen as of 07:54GMT, giving back some of its more than 1% rally from last week. Immediate resistance can be seen at 144.00 (Psychological level)an upside break can trigger rise towards 144.62(50%fib) .On the downside, immediate support is seen at 142.78(38.2%fib)a break below could take the pair towards 141.66(Lower BB)

Equities Recap

Asian equity markets  fell on Monday as ongoing trade tensions between the U.S. and China kept investors on edge.

Japan’s Nikkie   was down 1.32%  , South Korea's KOSPI was up 0.05%,Hang Seng was down by 0.73 %.

Commodities Recap

Gold prices surged more than 1% on Monday as investors flocked to safe-haven assets amid heightened geopolitical and trade tensions.

Spot gold was up 1.2% at $3,326.45 an ounce, as of 0606 GMT. U.S. gold futures rose 1.1% to $3,351.

Oil rose over $1 on Monday after OPEC+ maintained its planned output hike for July, easing fears of a larger supply increase.

Brent rose $1.46 (2.33%) to $64.24, while WTI gained $1.66 (2.73%) to $62.45 after both fell in the previous session.


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