Confidence returned to markets, following constructive progress on peace talks in the Middle East and holidays in Europe and the US. It is Memorial Day weekend in the US and Whit Monday, over much of Europe, so a slow start to the week was expected. Trump announced progress on peace talks and Asian markets rallied accordingly, with oil tumbling to US$90/barrel. The EUR regained some ground, moving up to 1.1650, while the GBP moved back above 1.3500.Commodity currencies were beneficiaries of the weaker reserve, with the AUD pushing back above 0.7150, while the NZD looks to regain 0.5900. Local markets will be looking forward to readings on Australian inflation and the latest RBNZ rate decision.
