Oil prices jumped back above US$70/barrel, following more attacks by Iran, on tankers in the Straits of Hormuz. Pressure is on the rise again, with President Trump issuing warnings of severe consequences, for Iran, if a peace deal is not reached. Global bond yields were on the rise again and the safety of the reserve currency looks increasingly more attractive. The EUR held above 1.1400, while the GBP drifted back towards 1.3350. German Industrial Production for May was flat, despite a jump in factory orders.
Commodity currencies again came under pressure from a hardening US Dollar, with the AUD surrendering 0.6950, while the NZD fell back below 0.5700. The RBNZ will release their latest interest rate decision and a reversal of the trend lower is expected. The RBNZ is expected to raise by 25 basis points and a failure to do so, would add to the downward pressure on the KIWI.
