Dollar Holds Ground Against Yen

Federal Reserve Chairwoman Janet Yellen is set to take part in a discussion on the state of the global economy at the Royal Academy in London. Investors expect Yellen to reiterate her positive views on the US economy despite a recent batch of lacklustre data, which should lend further support to the Fed's projection of lifting interest rates once more before the year ends.

Also in focus is the fourth annual ECB Forum on Central Banking, currently taking place at the Portuguese hilltop resort of Sintra, with Mario Draghi scheduled to deliver the introductory speech at 09:00 GMT. USDJPY was last seen around 111.700, reversing from a one month high of 112.075 reached overnight with the break above the most recent high potentially unlocking further upside in the pair.

Data released overnight by Statistics New Zealand revealed a narrowing in the nation’s trade surplus in May compared to the same period a year ago. The country's merchandise trade surplus stood at NZD$ 103 million last month versus NZD$ 343 million reported a year earlier. The consensus forecast of economists had projected a surplus of NZD$ 420 million for the month.

However, despite the monthly contraction, the balance of trade remains positive after exports climbed to their highest point in more than three years.  Exports rose by 8.70% to NZD$ 4.95 billion in May on the back of climbing prices for dairy exports to China.  The gains were outpaced by the 15.00% surge in the nation’s imports to $4.85 billion for the period, led by a 65.00% increase in crude oil purchases. NZDUSD is up in Tuesday morning trade following the results, with the pair retaking the 0.7300 level.