News

BoC is widely expected to leave interest rate unchanged at 2.75% for the second consecutive meeting today. While Q1 GDP surprised to the upside at 2.2% annualized, the growth was heavily front-loaded by export activity as US buyers rushed to stockpile Canadian goods ahead of impending tariffs. That one-off boost is unlikely to alter the […]

The post BoC to hold rates at 2.75%, maintain dovish bias appeared first on Action Forex.

Japan’s private sector lost steam in May as final PMI Services reading slipped to 51.0 from April’s 52.4, while Composite PMI declined to 50.2 from 51.2. The data point to only marginal growth in overall activity, with a slowdown in services combining with a mild deterioration in manufacturing output. S&P Global’s Annabel Fiddes noted that […]

The post Japan’s PMI composite finalized at 50.2, growth momentum falters appeared first on Action Forex.

Australia’s GDP expanded just 0.2% qoq in Q1, falling short of expectations for 0.4% qoq growth. On an annual basis, GDP rose 1.3% yoy. However, GDP per capita declined by -0.2% qoq, marking a renewed contraction in individual economic output. The ABS noted that severe weather disrupted key sectors including mining, tourism, and shipping, while […]

The post Australia’s GDP grows only 0.2% qoq in Q1, as weather and public investment drag appeared first on Action Forex.

There are a couple to take note of on the day, as highlighted in bold.

The first ones are for EUR/USD at the 1.1350 and 1.1400 levels. The expiries might play a part in keeping price action more limited, at least before we get to US trading later. They don’t tie much to any technical significance, though the key near-term moving averages are nearby at 1.1356-67 currently.

But as seen throughout the week so far, dollar sentiment and headline risks are the bigger factors at play. The former isn’t seeing much impact today after the greenback recovered some ground following the drop on Monday. Some pushing and pulling essentially.

Then, there’s one for USD/CAD at the 1.3750 level. The key hourly moving averages sit nearby at 1.3756-67 so the expiries adds another layer to keep any upside in check during the session ahead at least. That as the near-term levels above helped to arrest the upside on Thursday and Friday last week.

For more information on how to use this data, you may refer to this post here.

This article was written by Justin Low at www.forexlive.com.

• Trump plans to invoke emergency powers to fast-track critical minerals domestic production
• Australian Q1 2025 GDP 0.2% q/q (vs. expected 0.4%)
• PBOC sets USD/ CNY central rate at 7.1886 (vs. estimate at 7.1977)
• Federal Reserve Bank of Atlanta President Raphael Bostic is speaking on Wednesday, June 4
• Japan May 2025 Services PMI 51.0 (preliminary 50.8, prior 52.4)
• Canada says additional US tariffs on steel, aluminium are unlawful, unjustified
• US FBI Director: China target our food supply, putting American lives serious risk
• Iran open to nuclear deal around the idea of a regional uranium enrichment consortium
• Japan’s ruling coalition partner to propose sales tax cut on food
• Majority of economists expect Bank of Canada hold at its meeting today, Wednesday, June 4
• Two Chinese nationals charged for smuggling potential bioterror fungus into the US
• China Commerce Minister met with the European Trade Commissioner Sefcovic
• Australian S&P Global Services PMI Final for May 2025: 50.6 (prior 51.0)
• UBS warn that trade wars continue to pose a threat to the US dollar
• Trump ramping up steel tariffs by double is likely to cut jobs in US manufacturing
• Oil: private survey of inventory shows a larger headline crude oil draw than expected
• Trump-owned Truth Social files for Bitcoin ETF – New York Stock Exchange listing sought
• Trump and Xi to talk on Friday? That’s the latest chatter.
• ICYMI – SNB’s Tschudin dismisses the monthly inflation number as just one data point
• Barclays turning less negative on oil prices
• Japan to form think tank focused on Trump tariffs and Taiwan
• Trump’s big boosted steel tariffs will take effect from 1201 am on June 4
• Forexlive Americas FX news wrap: US dollar firms as the trade war ebbs
• Trade ideas thread – Wednesday, 4 June, insightful charts, technical analysis, ideas

Major FX is not much changed on the session here after minor moves only.

Geopolitics & Commodities:

• Iran signalled it may accept a nuclear deal framework centred on a regional uranium enrichment consortium—provided it is based inside Iran.

• Brent crude is marginally lower on the session, reflecting muted market reaction.

Australia:

• Q1 GDP rose just 0.2%, missing forecasts; annual growth remained at a tepid 1.3% as public demand and exports dragged.

• Household savings jumped to 5.2% as consumers cut back.

• AUD/USD dipped on the release but quickly recovered, and is now little changed in a narrow range.

China-US news

• Two Chinese nationals have been charged in the U.S. for smuggling a dangerous fungus considered a potential agroterrorism threat.

• The incident is being treated as a national security concern, heightening scrutiny around biotech and cross-border research links.

South Korea:

• The Kospi surged over 2% to its highest since August 2024 after opposition leader Lee Jae-myung won the snap presidential election.

• The index has now extended its gains for the year, buoyed by hopes of policy shifts and political stability.

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AUD swings in a small range only:

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