Tensions in the Middle East were on the rise again, as the US State Department issued ‘red-alert’ warnings to citizens across the region, as a possible preparations are made for further strikes on Iran. Oil prices surged, once again, towards US$100/barrel. This added pressure to markets, with US ands European equities tumbling, once again. The US Dollar was steady, with the EUR trading 1.1225. while the GBP hit 1.3400.
The AUD Dollar consolidated above 0.7000, while the NZD slipped back below 0.5700, following the release of the latest quarterly inflation number. The CPI fell more than expected, from 4.1% to 3.7%, easing pressure on the RBNZ to raise rates. Expectations are high, for greater inflationary pressures, if the Middle East re-ignites.
