Tensions cooled in Iran overnight, as the protests settle and the prospect of US/Israeli intervention, diminishes. US/Greenland/Denmark negotiations were completed in what promises to be only the first of many, in a dilemma, that has the potential to upset the whole NATO alliance. The UK announced some positive GDP growth data and improved manufacturing/industrial production numbers. This did little for the GBP, which crashed below 1.3400, while the EUR held above 1.1600.
The AUD regained 0.6700, while the NZD stumbled around 0.5750, bringing the cross to near long-term lows. Commodity prices have favoured the Australian economy and thus the currency, supported also by inflationary pressures, holding interest rates at elevated levels. This is likely to continue to assist the currency as interest rates differentials prove very attractive to investors.
