The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0214 GMT - Japan's stepped-up stance on FX intervention may boost the BOJ's "degree of freedom" in policy management, three members of Goldman Sachs' Economics Research say in a report. "The latest coordinated U.S.-Japan intervention will likely serve as a factor to alleviate pressure from the Japanese government on the BOJ's monetary policy," the members say. However, "whether the BOJ uses the degree of freedom is a separate issue," they say. "For the BOJ to accelerate the pace of rate hikes, it needs to judge that the risk of underlying inflation exceeding 2% is becoming a reality, through making an upward revision to its inflation outlook. At this stage, we don't judge this possibility to be high," they add. (ronnie.harui@wsj.com)

0209 GMT - Australian household spending was up 0.8% in June from May, but the Reserve Bank of Australia is likely to play down the strength of the data, says Abhijit Surya, economist at Capital Economics. The RBA has said the spending report doesn't map across well to GDP data, he adds. With fuel tax cuts having expired, automotive fuel inflation is set to provide a boost to headline inflation. That in turn will dent household income growth, Surya adds. The RBA won't tighten policy any further, even though markets see a decent chance of another rate hike in the year ahead, he says. (james.glynn@wsj.com; @JamesGlynnWSJ)

0205 GMT - Indonesia's external position is expected to remain vulnerable to geopolitical developments and energy market fluctuations, UOB economists Enrico Tanuwidjaja and Vincentius Ming Shen say in a note. While nickel's downstream initiatives and industrialization continue to support exports, the government's energy security initiatives are unlikely to deliver meaningful benefits until refinery projects are completed, they say. Indonesia could face near-term twin-deficit risks as current account and fiscal pressures build, they reckon. However, they add that ongoing downstream initiatives and export security programs could improve structural resilience over the longer term. (yingxian.wong@wsj.com)

0113 GMT - Coordinated Japan-U.S. yen intervention buys time, but cannot reverse the structural forces driving depreciation, say analysts at BMI, a unit of Fitch Solutions. A U.S.-backed operation carries more weight than Tokyo acting alone, and the pledge of further action will give speculators pause. But any U.S. contribution will likely be constrained by size, BMI says. Washington intervened by selling euros, not dollars, drawing on the Treasury's Exchange Stabilization Fund, which has limited firepower. BMI expects the yen to weaken gradually toward 164 to the dollar as a wide interest-rate gap underpins carry trades. Structural outflows from households buying foreign equities and thinner corporate profit repatriation will weigh too. Yen last at 157.59 versus the dollar. (fabiana.negrinochoa@wsj.com)

0058 GMT - The Reserve Bank of New Zealand is about to get a reality check, with unemployment in the country expected to rise sharply in 2Q, says ANZ. The jobless rate is expected to lift 0.2 percentage points to 5.5% in the quarter as some firms hit the pause button in the wake of heightened global uncertainty and oil price shock, it says. For the RBNZ, such a result should argue strongly for it to remain sidelined for some time. The job market is unlikely to be a source of wage pressures. The data is due on Wednesday. (james.glynn@wsj.com; X @JamesGlynnWSJ)

0013 GMT - Japanese stocks are higher in early trade following gains in U.S. technology shares overnight. Chip stocks are leading the gains. Kioxia Holdings is up 3.0% and Lasertec is 4.7% higher. The dollar is at 157.40 yen, compared with Y156.63 as of Monday's Tokyo stock market close. Investors are closely watching developments in the Middle East after Iran said Monday that there weren't any talks under way with the U.S. Quarterly corporate earnings are also in focus. The Nikkei Stock Average is up 0.4% at 63987.36. (kosaku.narioka@wsj.com; @kosakunarioka)

0009 GMT - The dollar is rising against the yen in a possible corrective pattern, based on the 1-hour chart, StoneX's Matt Simpson says in a research report. The dollar-yen pair could attempt to extend gains toward the 200-day exponential moving average, the senior market analyst says. LSEG data shows the dollar's 200-day EMA is around 157.79 yen. "If [Japan's] MOF allows, a break above 158.00 [yen] brings the high-volume node and monthly pivot point into focus around the 159.00 [yen] handle," Simpson adds. The dollar is 0.2% higher at Y157.47. (ronnie.harui@wsj.com)

0008 GMT - JGBs edge higher in early Tokyo trade, tracking overnight price gains in U.S. Treasurys. JGBs and Treasurys tend to move in tandem. JGB prices may also be buoyed by ongoing decline in crude oil prices which usually alleviates inflationary pressure in Japan and may reduce the urgency for the BOJ to hike rates. Meanwhile, investors may focus on Japanese Finance Ministry's auction today of about 2.6 trillion yen of 10-year JGBs. "We expect the auction to produce a benign to somewhat soft result," SMBC Nikko Securities' senior Japan rates strategist Miki Den says in a research report. Ten-year JGB yield is down 1 bp at 2.810%. (ronnie.harui@wsj.com)

2346 GMT - Japanese stocks may decline as uncertainty over the Iran conflict and energy costs continues. Nikkei futures are 0.2% lower at 63550 on the SGX. The dollar is at 157.42 yen, compared with Y156.63 as of Monday's Tokyo stock market close. Investors are focusing on developments in the Middle East after Iran said Monday that there weren't any talks under way with the U.S. Quarterly corporate earnings are also being closely watched. The Nikkei Stock Average fell 0.9% to 63754.90 on Monday.(kosaku.narioka@wsj.com)

2250 GMT - Westpac has scrapped its call for further interest-rate increases by the Reserve Bank of Australia, but the timing of the eventual unwind of recent boosts remains on track for August 2027, says Luci Ellis, chief economist at the bank. Still, with a lower peak in the official cash rate likely, Westpac is now pencilling three cuts rather than the four it had earlier expected. For now, Ellis expects the communication of the RBA to stay hawkish and not rule out further increases. (james.glynn@wsj.com; @JamesGlynnWSJ)

2249 GMT - Vista's bull at Ord Minnett expects the cinema software group to achieve the top end of its upgraded revenue guidance. Vista now expects FY26 revenue of NZ$179 million-NZ$184 million. Ord Minnett forecasts NZ$183 million, which analyst Amelia Hamer says is "supported by a seasonally stronger box office, partial reversal in FX headwinds, and early traction in the payments product." Moviegoers have returned to cinemas in FY26 so far. That's despite ongoing box office skepticism since the pandemic, and concerns about the structural outlook for the industry, the bank says. "With the industry entering its seasonally stronger half, we believe the market continues to underappreciate the strength of box office and associated benefit to Vista," Ord Minnett says. (david.winning@wsj.com; @dwinningWSJ)

2241 GMT [Dow Jones]--Westpac no longer expects rate hikes by the Reserve Bank of Australia this year. The bank's chief economist, Luci Ellis, says inflation has been more benign than feared and is also undershooting RBA forecasts. The substantial pass-through of higher energy costs seen in the early phase of the Middle East conflict has not been followed up in recent months, she adds. Still, there is a risk of a hike in November if inflation picks up again in 3Q26. But that is not the bank's base case, she adds.