Currency Shifts: Central Banks Drive Global Trends

The Australian dollar is on track for another robust monthly gain amid expectations of a more hawkish stance from its central bank. Meanwhile, the Chinese yuan has lost momentum after the People's Bank of China intervened to moderate its appreciation.

This intervention included scrapping foreign exchange risk reserves, pushing the onshore yuan down 0.2% to 6.8553 per dollar, ending a 10-day winning streak. Analysts suggest China's leverage might have increased following the U.S. Supreme Court's nullification of Trump-era tariffs.

Across Asia, the Japanese yen's potential hikes are complicated by political influences, while in Europe, sterling and the euro face dovish outlooks. The U.S. dollar gains amid a more hawkish Federal Reserve, despite ongoing geopolitical tensions.