Morning Update Korea AUDNZD Iran Deal and SARB Preview

A comprehensive daily briefing highlighting hawkish shifts from the Bank of Korea and SARB, alongside trade strategies for a potential Middle East deal. Focus is on FX pair corrections (AUDNZD, NOKSEK) and the structural strength of the Korean current account despite equity outflows.

Key Takeaways

• 1.The Bank of Korea (BOK) kept rates at 2.5% but turned notably hawkish, signaling two 25bp hikes in the second half of 2026.
• 2.A correction in AUDNZD is expected, with 1-2% downside likely as RBNZ guidance out-hawks the RBA.
• 3.Goldman Sachs analysts are proposing 'Dual Binary' option structures to trade a potential relief rally and ToT reversal stemming from a Middle East deal.

Table of Contents

• 1) Korea Update: BOK And NPS
• 2) AUDNZD Thoughts
• 3) Iran Deal Trade Idea: ToT Reversal + Risk On
• 4) FX Trader Call Takeaways
• 5) SARB Preview

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