Asia Summary and Highlights 14 July
U.S. military carrying out a third consecutive night of strikes on Iran and the naval blockade of Iran
Asia Session
RBNZ chief economist Conway reaffirmed last week 25bp hike to 2.5% and said the bank will respond further if Middle East linked inflation pressures prove persistent. While it is a similar rhetoric from the RBNA meeting summary, the reinforcement is keeping Kiwi bidders hopeful of more hike to come in the next meeting. NZD/USD is trading 0.71% higher at 0.5791. AUD/USD is also trading 0.21% higher while USD/CAD slips 0.18% with oil up almost two dollar/b.
The U.S.-Iran escalation persists and seems to see little easy solution soon. The initial optimism from continued negotiation fades quickly with more U.S. military operation. Major equity indexes are performing individually. USD/JPY is trading 0.08% lower at 162.30. Else, EUR/USD is down 0.11% and GBP/USD is down 0.14%.