[MARKET ANALYSIS] NZD outperforms as the RBNZ hikes rates by 25bps to 2.50%

DXY trades in a narrow 101.10-101.22 range despite the renewed aggression between the US and Iran, primarily as a result of IRGC strikes on 3 commercial ships in the Strait of Hormuz. Looking ahead, focus will be on the FOMC minutes from the June meeting. EUR and GBP rotate in tight ranges, with EUR/USD briefly slipping below the 1.1400 handle while GBP/USD trades either side of the 1.3350 mark. Not much on the docket in either region. ECB minutes are expected on Thursday, while final German and French inflation figures are to be released on Friday. USD/JPY regained the 162.00 handle during Tuesday’s session and has continued to extend higher on Wednesday, topping at 162.46. An interesting report by Asahi and Nikkei, stating that the Japanese government may tweak a reference to monetary policy in its annual policy agenda to avoid the appearance that it is putting pressure on the BoJ. NZD/USD is the G10 outperformer, after the RBNZ hiked rates by 25bps, unanimously, and signalled further hikes to bring inflation to the 2% target mid-point.