SYDNEY: The Australian dollar held near a 13-year high against the kiwi on Thursday as markets bet on diverging rate outlooks between the two central banks, though both currencies lost ground to a surging yen amid suspected Japanese government intervention.<\/p>\n
The Aussie slipped 0.1% to NZ$1.2227, having jumped 1% overnight to hit a 13-year peak of NZ$1.2285.<\/p>\n
That was the biggest daily rise since April 2025 and was largely due to sharp falls in the kiwi after a dovish rate hike from the Reserve Bank of New Zealand (RBNZ) that had markets wagering on a policy hold next month after two straight increases this year.<\/p>\n
The kiwi bounced 0.2% to $0.5863, having fallen 0.7% overnight to as low as $0.5802, the weakest since July 30. Support is around $0.5762.<\/p>\n
“Our long standing dovish view on the RBNZ remains unchanged. We believe 2.75% is terminal in this cycle,” said Faraz Syed, an economist at Citi, adding that market pricing of three more rate hikes still remains high.<\/p>\n
“We should see a slowdown in activity indicators over the coming weeks and months that will likely prevent the RBNZ from hiking further.”<\/p>\n
The Aussie also drew some support from better-than-expected economic data that added to bets the Reserve Bank of Australia (RBA) will raise interest rates a fourth time at its September 28-29 meeting, priced at 55% probability.<\/p>\n
It was steady at $0.7170, after gaining 0.3% overnight. Bulls are targeting the August high of $0.7208, with a break above that level opening the way to $0.7280.<\/p>\n
Paul Bloxham, chief economist at HSBC, now expects the RBA to hike twice this year to a terminal rate of 4.85%, arguing demand growth is still exceeding growth in the economy’s supply capacity.<\/p>\n
Swaps imply a total tightening of 40 basis points from the RBA next year, equivalent to one and a half rate hikes.<\/p>\n
In the broader FX market, the yen appreciated sharply, leaving markets alert to the possibility of intervention by Japanese authorities. The Aussie and kiwi lost 0.7% and 0.4% to 113.05 yen and 92.49 yen , respectively. – Reuters<\/p>\n","protected":false},"excerpt":{"rendered":"SYDNEY: The Australian dollar held near a 13-year high against the kiwi on Thursday as markets bet on…\n","protected":false},"author":2,"featured_media":588926,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[4232,138,219,4240,3508,194,111,139,69,9045,9046,42907],"class_list":["post-588925","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-australian-dollar","tag-business","tag-economy","tag-forex","tag-interest-rates","tag-kiwi","tag-new-zealand","tag-newzealand","tag-nz","tag-reserve-bank-of-australia","tag-reserve-bank-of-new-zealand","tag-yen"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/588925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=588925"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/588925\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/588926"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=588925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=588925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=588925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}