The Middle East ceasefire is holding and peace negotiations are ongoing, so markets remain bullish. Equities trade around record highs, while oil prices and bond yields drift lower. Oil fell back below US$90/b, while bond yields trade well off record highs, seen only a week or so ago. The US Dollar remains strong, with the EUR trading 1.1620, while the GBP holds 1.3400.Local news drove markets in both NZ and Australia. Australian inflation came in much lower than expected, despite the energy crises, tumbling from an annualised 4.6% to 4.2%. This took the pressure of the RBA and the currency fell back to 0.7130, while the NZD jumped towards 0.5900. The RBNZ left rates unchanged, as expected, but was extremely hawkish in their decision. The Central Bank forecast two rate rises this year, due to the energy crises and the impact on inflation. The NZD/AUD cross-rate spike to 0.8250.
