A dearth of economic data, allowed the focus of markets to remain on the Middle East crises and more particular energy prices. Oil had slumped to US$90/b, but limited military strikes by the US for ‘self-defence’ purposes, lifted the price back over US$93/b. The US has downplayed the strikes, assuring markets that the peace talks were ‘proceeding nicely’. The US Dollar gained ground, with the EUR slipping back towards 1.1600, while the GBP retreated to 1.3430.Commodity currencies drifted under the resurgent reserve, with the NZD falling below 0.5850, while the AUD held 0.7150. Local markets will be focused on domestic issues, with an important inflation/CPI reading released in Australia, and the latest RBNZ Interest rate decision. The RBNZ are expected to hold rates unchanged, but expect some warnings of inflationary pressures and future rate rises, if the Middle East conflict continues.
