It was a mixed start to the week in Asia, following a weekend announcement from Trump that 30% tariffs on imports from the European Union and Mexico will take effect from August 1. Leaders in both Brussels and Mexico City signalled they will continue negotiations with the U.S. this month in hopes of reaching a lower tariff rate.

FX

Early Asia FX trade opened with a gap higher in the USD, though most of those gaps quickly closed.

  • JPY outperformed slightly

  • AUD, NZD, and GBP lagged

  • The U.S. Dollar Index climbed to a three-week high

Key Data

  • Japan May Core Machinery Orders:

    • -0.6% m/m, +4.4% y/y (both better than expected)

    • Despite its volatility and dated nature, the report was viewed as mildly encouraging

  • China June Trade Data:

    • Exports beat expectations

    • Imports rose for the first time in 2025

    • China is still recording a massive monthly trade surplus of US$115 billion, despite facing hefty U.S. tariffs

    • H1 trade with the U.S. declined, but officials at the General Administration of Customs noted signs of recovery and expressed hope for further improvement in the months ahead

Equities

Asia-Pacific equity markets showed varied performance:

  • Australia (S&P/ASX 200): Flat

  • Hong Kong (Hang Seng): -0.1%

  • Japan (Nikkei 225): -0.25%

  • Shanghai Composite: +0.4%

  • U.S. equity index futures traded lower through the session.

Cryptocurrency

  • Bitcoin surged above $120,000, setting a new all-time high

Geopolitics

  • French President Emmanuel Macron called for a major boost in defence spending, warning that freedom in Europe faces its greatest threat since World War II.

  • Axios reported that Trump is preparing an “aggressive” new weapons plan for Ukraine, including long-range offensive missiles capable of striking deep into Russia—marking a significant shift from his prior focus on supplying only defensive aid.

EURUSD opening gap, filled wrap 14 July 2025
Source: Forex Live