NZD, KRW, CNY in Focus as Trump Nears Critical Iran Decision

Asia-Pacific currencies are under pressure as geopolitical risk dominates early-week trading, with Trump reportedly nearing a pivotal decision between a new Iran ceasefire and full-scale war. The RBNZ's own inflation model for Q2 2026 held steady at 2.7% year-over-year, unchanged from Q1, suggesting the central bank may maintain its current policy stance and limiting near-term NZD upside. USD/CNY was fixed by the PBOC at 6.7917, with reports of China's national team intervening to stabilize markets amid the geopolitical uncertainty. South Korea's President Lee flagged concerns over won weakness and rising risks from leveraged financial products, adding to regional currency pressures. Goldman Sachs' warning that Brent could breach $120/bbl if Hormuz shipping lanes remain disrupted is intensifying risk-off positioning across the region. Israel's intelligence suggesting Iran has relocated nuclear centrifuges into hardened mountain facilities adds another layer of escalation risk. Traders should watch for Trump's imminent decision as the primary volatility catalyst, with safe-haven USD and JPY likely to benefit from further escalation while risk-sensitive Asia-Pacific currencies could face significant selling pressure.