Asian traders pivoted toward the RBA and BOJ after a US‑Iran agreement reopened the Strait of Hormuz, sparking a global relief rally. The Australian dollar slipped as the RBA signaled its first unchanged rate this year, while the yen held steady amid expectations of a rate hike to the highest level since 1995.

US equity futures dipped after the S&P 500 added 1.7% and the Nasdaq 100 surged 3.1%. Crude prices edged up, while investors eye shipping traffic normalisation in the Hormuz corridor. Trump and Vice President Vance signed an electronic memorandum of understanding with Iran, with Macron noting the strait would fully open Friday.

Market watchers now focus on the RBA and BOJ decisions amid a week of central‑bank announcements, including the Fed’s upcoming rate call under new Chair Kevin Warsh. Economists see less than an 80% chance of a quarter‑point Fed hike by December. Analysts suggest easing geopolitical tension could lower bond yields, prompting a shift into cyclical sectors.

The RBA’s steady stance signals confidence in Australia’s inflation trajectory, while the BOJ’s rate hike nudges the yen toward a tighter policy band. Together, these moves tighten global liquidity, pressuring equity valuations and prompting investors to reassess risk‑return balances across emerging and developed markets.