God on their side: how the US, Israel and Iran are all using religion to garner support 
Global Central Banks Hold Rates Amid Iran War-Driven Energy Price Surge 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
Bank of Japan Unveils New Inflation Gauge to Support Case for Future Rate Hikes 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Goldman Sachs Raises ECB Rate Hike Forecast Amid Persistent Energy-Driven Inflation 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
Bank of Japan Governor Signals Gradual Progress Toward 2% Inflation Target 
How the war in Iran is already affecting UK farmers and food production 
From a central bank perspective, the RBA continues to keep the faith in the 3% growth story for Australia. In its most recent communication, the RBA acknowledged the likely softness in 1Q GDP but refrained from reading too much into a weak print.
Our RBA outlook (on hold for some time) is anchoring front end valuations. We expect 3yr swap rates to remain in a 1.8% to 2.3% range, with core inflation still below 2%.
On the flip side, the RBNZ has signaled the next cycle – a tightening one – will not start until the end of 2019. That will anchor the short end, although markets will not abandon their expectations for tightening as early as mid-2018 which would imply that occasional spikes in the 2yr will be likely. A 2yr swap range of 2.10%-2.60% is expected. The long end will continue to follow US yields, which we expect to rise. That means the curve steepening trend should continue.
Buy a 2-month AUDNZD 1.09-1.11-1.13 1x2x1 call fly,
Buy 1M AUDUSD vs AUDNZD vol spread, equal vega.
Alternatively, aggressive bears can bid NZDJPY 1m2m IVs & RR and buy 75 NZDJPY OTM put of mid-month tenors, sell a 1m in premium-rebate notionals.
