{
  "id": 14137162,
  "title": "Australia dollar finds some support in RBA hawks, kiwi totters",
  "url": "https://urgent.news/2026/10/13/australia-dollar-finds-some-support-in-rba-hawks-kiwi-totters",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-13T06:25:47.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40443969/australia-dollar-finds-some-support-in-rba-hawks-kiwi-totters"
  },
  "original_language": "en",
  "account": "On Tuesday, the Australian dollar remained largely unchanged as a surge in global risk assets clashed with hawkish remarks from Australia's central bank. Meanwhile, New Zealand's currency plummeted to its lowest level since April 2025. Minutes from the Reserve Bank of Australia's last policy meeting revealed the board's strong support for a quarter-point rate increase to 4.60%, expressing apprehension about persistent inflation. Andrew Boak, an economist at Goldman Sachs, deemed the minutes hawkish due to the board's focus on domestic excess demand and minimal discussion of existing hikes or potential downsides. They also pointed out that failing to tighten monetary policy could weaken the Australian dollar, thereby easing financial conditions. While the Reserve Bank of Australia is expected to maintain its current stance, Boak anticipates a lower threshold for a possible rate increase in November, contingent on the outcome of the third-quarter inflation data, which is due later this month and may indicate core inflation rose by a significant 1.0% quarter-over-quarter, staying well above the RBA's target range of 2% to 3%.\n\nAustralian businesses reported a decline in confidence on Tuesday, citing the impact of higher interest rates and increasing energy costs, which were compressing margins and driving up expenses. The Australian dollar managed to hold near $0.6956 following a dip to $0.6995 overnight as the U.S. dollar gained strength across the board. Should the dollar fall below $0.6904, it would signal a breach of the June low of $0.68665. Meanwhile, the New Zealand dollar tumbled to $0.5585, marking a 0.5% decline overnight and hitting a 17-month low. A dip below $0.558 could potentially push the currency into a deeper trough of $0.5485. Interestingly, the New Zealand dollar has suffered due to the relative strength of local bonds in comparison to global debt markets. The 10-year bond spread over U.S. Treasuries has shifted from positive 40 basis points at the start of the year to -18 basis points now, despite markets projecting a 60% probability of a 25 basis point rate hike to 3.0% by the Reserve Bank of New Zealand meeting on October 28. Market expectations are for rates of 3.75% by next August.",
  "summary": "SYDNEY: The Australian dollar flatlined on Tuesday as a selloff in global risk assets offset a hawkish commentary from the country’s central bank, while its New Zealand counterpart touched lows last seen in April 2025. Minutes of the Reserve Bank of Australia’s last policy meeting showed the board was all-in for a quarter-point rate hike to 4.60% and worried that inflation would still stay too…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}