Asia Summary and Highlights 29 Apr
Trump has instructed aides to prepare for an extended, indefinite blockade of Iranian ports
UAE exiting OPEC
Asia Session
The Australian CPI rocketed higher with Q1 quarterly at 4.1% from 3.6% in Q4 2025, trimmed mean CPI is slightly cooler at 3.5% y/y. Monthly CPI is also red hot at 4.6% from 3.7%. It significantly increases speculation of an imminent hike from the RBA normally, but since it is cost driven mostly, the RBA may weigh the pros and cons before tightening immediately. AUD/USD is trading 0.29% lower at 0.7161. NZD/USD is trading 0.4% lower while USD/CAD rises 0.03%. Oil is little changed as current Hormuz disruption cancels out potential supply increase from UAE's exit of OPEC.
Trump has instructed aides to prepare for an extended, indefinite blockade of Iranian ports. He seems to be capitalizing on the opportunity that Iran's oil storage facility is almost at maximum an is pressing Iran to negotiate, especially on nuclear terms. The ball is now in Iran's court and seems to be hard ball being played from both sides. USD/JPY is trading 0.02% higher at 159.63 on a Japanese holiday. Else, EUR/USD is down 0.07% and GBP/USD is down 0.06%.
European and North American sessions
The USD moved higher in Europe but corrected in North America. USD/JPY was firmer, fining support near 159 and then moving above 159.50 while USD/CAD moved up to 1.3665 from 1.3620. AUD/CAD also advanced as AUD/USD erased a modest dip as while EUR/USD recovered from a dip below 1.17. EUR/GBP made only marginal gains but EUR/CHF picked up to .9240 from .9220. US consumer confidence was resilient, rising to 92.8 in April from 92.2 in March, though markets were subdued awaiting Wednesday’s FOMC decision.