On May 29, the Reserve Bank of New Zealand (RBNZ) surprised markets with a hawkish decision, raising the probability of a July rate hike to 79%. On the same day, expectations for a rate hike from the Reserve Bank of Australia (RBA) were scaled back due to softening economic data and rising unemployment. Additionally, optimism over a US-Iran deal led to a drop in oil prices and a dovish repricing of global rate expectations.
