Asia Summary and Highlights 8 July
USD/JPY Fast Approaching Monthly High
Iran says it targeted a US base in Bahrain, warns of more attacks
RBNZ Gov Breman says Inflation may have already peaked
Asia Session
The RBNZ hiked rates by 25bps to 2.5% unanimously while Governor Breman says Inflation may have already peaked (3.9% y/y June 2026). While they cite "Gradually moving rates toward neutral", it does not seem to suggest more hikes to come immediately with all the uncertainty. NZD/USD is trading 0.44% higher at 0.5703. AUD/USD is trading 0.2% higher while USD/CAD slips 0.11%.
As U.S.-Iran exchange fire, the haven bids for USD arrived in early Asia. The latest report see Iran targeting U.S. base in Bahrain and looks like the fragile ceasefire is already broken. USD/JPY has already broken Monday high and fast approaching July high at 162.60, currently trading 0.17% higher at 162.35. Else, EUR/USD is up 0.07% and GBP/USD is unchanged.