investingLive Asia-Pacific FX news wrap: Vance heading to Pakistan for talks with Iran

• Westpac sees US dollar weakening as markets look through energy shock and tensions
• Recapping – NZD rises after CPI beat as markets price higher odds of May RBNZ rate hike
• Japan fin min says closely monitoring financial markets, will take measure if needed
• China shows resilience to energy shock but weak demand limits growth outlook, Fitch says
• Vance heads to Islamabad as Iran gets Supreme Leader approval for talks before deadline
• PBOC sets USD/ CNY central rate at 6.8594 (vs. estimate at 6.8112)
• Bank of Korea flags oil shock risks to inflation and growth, signals caution
• China signal push to upgrade Switzerland FTA, expanding trade to services, digital sectors
• BOJ survey shows flat loan demand, highlighting fragile Japan growth and cautious outlook
• BOJ likely to hold rates in April but signal readiness to hike as inflation risks rise
• NZ CPI holds at 3.1% as electricity and petrol drive inflation above RBNZ target band
• New Zealand Q1 2026 inflation: CPI q/q 0.9% (expected 0.8%) CPI 3.1% y/y (expected 2.9%)
• NZ business confidence slumps as Hormuz disruptions weigh on outlook and demand
• Fed nominee Kevin Warsh says central bank independence depends on discipline, not politics
• IEA calls for Iraq-Turkey pipeline to bypass Hormuz and boost Europe’s energy security
• Iran’s top negotiator says does not accept negotiations under threats
• Trump invokes Defense Production Act to boost US oil supply and infrastructure capacity
• Pakistan may announce US-Iran ceasefire extension of 2 weeks
• Apple’s Tim Cook to become Exec. Chairman. New CEO is John Ternus.
• investingLive Americas market news wrap: The market stays constructive on peace

At a glance:

• Iran signals mixed messaging: rejects talks under pressure but approves negotiators (Axios)
• US–Iran talks set for Islamabad as ceasefire deadline approaches
• White House says deal “close,” but Trump retains military options
• Oil steady, USD edges higher on geopolitical uncertainty
• NZ CPI beats, lifting rate hike expectations and supporting NZD
• NZ business confidence weakens sharply despite firm inflation backdrop
• Trump invokes Defense Production Act to boost US energy capacity
• South Korea’s KOSPI hits record high

Geopolitical headlines dominated, with mixed signals out of Iran complicating the outlook for negotiations. Iranian Parliament Speaker Mohammad Bagher Ghalibaf said Tehran would not engage in talks while the US blockade remains in place, rejecting negotiations conducted under pressure and accusing Washington of turning diplomacy into a “table of surrender.”

However, sentiment shifted later after Axios reported that Iranian negotiators had received approval from the Supreme Leader to attend talks in Pakistan, though there has been no official confirmation from Tehran.

The diplomatic push continues to build, with US Vice President JD Vance expected to travel to Islamabad for negotiations. Pakistani media suggest a potential deal could be reached as soon as Wednesday, while White House Press Secretary Karoline Leavitt said the US has “never been closer” to an agreement, though Donald Trump still retains options if talks fail.

Market reaction was relatively contained. Oil prices were little changed, while the US dollar edged modestly higher across most major FX, reflecting cautious positioning into the ceasefire deadline.

In New Zealand, inflation data surprised to the upside, with Q1 CPI rising 0.9% q/q and 3.1% y/y, keeping inflation above the Reserve Bank of New Zealand’s target band. Non-tradables inflation remained firm, reinforcing domestic price pressures and increasing the likelihood of a near-term rate hike. Markets are now pricing close to three hikes this year.

However, business confidence deteriorated sharply in Q1, highlighting the growing drag from geopolitical uncertainty and higher energy costs. The divergence between firm inflation and weakening activity underscores a challenging policy backdrop. The NZD initially jumped on the data before trimming gains, though it remains stronger against the AUD.

In the US, Trump invoked the Defense Production Act to channel federal support into energy production and infrastructure, including oil, LNG, coal and grid capacity, underscoring a strategic push to boost domestic supply.

Elsewhere, South Korea’s KOSPI hit a record high, while attention now turns to Trump’s scheduled interview on CNBC’s Squawk Box at 08:30 ET (12:30 GMT) on Tuesday, April 21, 2026.

This article was written by Eamonn Sheridan at investinglive.com.