{
  "id": 7489015,
  "title": "Australia, NZ dollars play defence with bonds under siege",
  "url": "https://urgent.news/2026/09/15/australia-nz-dollars-play-defence-with-bonds-under-siege",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-15T05:30:54.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40439552/australia-nz-dollars-play-defence-with-bonds-under-siege"
  },
  "original_language": "en",
  "account": "On Tuesday, the Australian and New Zealand dollars faced downward pressure as markets anticipated multiple US rate hikes in the near future. This bearish sentiment pushed Australian bond yields to their highest levels in 15 years, with the 10-year yield surging 11 basis points to 5.394%. Over the year, Australian yields have climbed by 60 basis points, while New Zealand's 10-year yield rose 24 basis points in just two sessions, reaching 5.043% - a peak not observed since late 2023. This heightened volatility has led to a tightening of short-term swap rates, contributing to a more constrained financial environment amid the Reserve Bank of New Zealand's cautious tone about future policy adjustments.\n\nData released on Tuesday unveiled a sharp decline in electronic retail card spending, plummeting 0.9% in August, largely driven by surging petrol prices and elevated borrowing costs. Economic growth for the second quarter is forecasted to be modest at 0.2%, further dampening consumer confidence. Satish Ranchhod, a senior economist at Westpac, pointed out the lack of momentum in household spending, attributing it to soaring living costs and a subdued labor market. While he expects consumer spending to rebound next year as the job market improves and inflation subsides, the recovery is anticipated to be gradual.\n\nDespite these headwinds, market projections suggest a 60% likelihood of the Reserve Bank of New Zealand (RBNZ) raising its cash rate to 3.75% by mid-2027. Conversely, there is an 85% probability that the Reserve Bank of Australia (RBA) will increase rates to 4.60% at its meeting on September 29. Meanwhile, the US Federal Reserve is widely expected to tighten monetary policy on Wednesday and continue tightening moves by December. The looming threat of a hawkish Federal Reserve has kept the Australian dollar near $0.7135, having slipped 0.4% to a low of $0.7109 overnight.\n\nThe immediate support for the Australian dollar rests at $0.7067, while resistance is anticipated at $0.7150 and $0.7187. Conversely, the New Zealand dollar hovered around $0.5778, experiencing a 0.6% decline overnight to a low of $0.5757. Resistance levels for the kiwi dollar are set at $0.5835, with support found at $0.5762. Reserve Bank of Australia Governor Michele Bullock is scheduled to appear before Parliament on Friday, where she is expected to reiterate concerns that further rate hikes may be necessary to curb inflation effectively.",
  "summary": "SYDNEY: The Australian and New Zealand dollars remained on the back foot on Tuesday as markets priced in an imminent US rate hike and more to come later, sending Aussie bond yields barrelling to fresh 15-year highs. Pressure on global bond markets was intense as Australian 10-year yields spiked 11 basis points (bps) to 5.394%, bringing the increase for the year so far to 60 bps. Yields on New…",
  "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."
}