Aussie hovers near 4-month peak against dollar, close to 13-year top on kiwi
SYDNEY: The Australian dollar hovered near a four-month peak on Monday as traders eyed two upcoming central bank appearances and US inflation data that could decide if the Antipodean currency’s upward trend has further to run. The Aussie was steady at $0.7202, having gained 0.6% last week to resume its upward trend from a low of $0.6867 in June. It is facing some resistance at Friday’s high of…
The Australian dollar edged close to a four-month high against the US dollar on Monday, with traders watching closely for central bank announcements and US inflation data. The Aussie currency, which had gained 0.6% last week, was trading at $0.7202, its peak since April. It faces resistance near a $0.7214 high from Friday but may test the 2026 peak of $0.7277.
The New Zealand dollar, on the other hand, struggled, slipping 0.2% to $0.5871 after falling 0.6% last week. This decline was partly due to a dovish stance from the Reserve Bank of New Zealand, which has an 80% chance of pausing interest rates next month. Meanwhile, the Australian central bank could raise rates for a fourth time in 2026 to 4.6%, keeping the Aussie near a 13-year high of NZ$1.2268.
Analysts at CBA predict the Aussie could remain near 72 cents for most of the week if the Reserve Bank of Australia (RBA) officials, Andrew Hauser and Sarah Hunter, appear hawkish. However, a robust US inflation report might push the currency down to around $0.7150. "We'll be watching to see if the stronger-than-expected Australian July CPI signals rising inflation risks, which could support another rate hike," said Kristina Clifton, a senior economist at CBA.
Australia's 3-year government bond yields rose 2 basis points to 4.77%, up slightly from a five-year high of 4.832% after the US and Iran attacked ships in the Gulf.
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