{
  "id": 9718587,
  "title": "Australia and NZ dollars are on the ropes; bonds show some grit",
  "url": "https://urgent.news/2026/09/25/australia-and-nz-dollars-are-on-the-ropes-bonds-show-some-grit",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-25T05:58:59.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40441202/australia-and-nz-dollars-are-on-the-ropes-bonds-show-some-grit"
  },
  "original_language": "en",
  "account": "The Australian and New Zealand dollars are struggling this week as US yields keep rising, supporting the greenback. Australia's Reserve Bank is widely expected to raise rates by 25 basis points to 4.60% at its meeting on September 29, with a target of 4.85% by February. Paul Bloxham, HSBC's head of Australian economics, expects the Reserve Bank to show more determination to bring inflation back to target.\n\nMarkets are increasingly skeptical of the Federal Reserve, with a 68% chance of a rate hike in October and around 90 basis points of tightening by mid-year. Consequently, the Australian dollar is hovering around $0.7010, down 0.4% overnight and facing losses of 1.6% for the week, threatening support levels around $0.6923 and $0.6867. Despite significant losses in the bond market, Australian bonds managed to outperform US debt, with 10-year yields reaching 5.408%. The spread over Treasuries has narrowed to just 22 basis points in recent weeks.\n\nSimilarly, the New Zealand dollar is facing a downward spiral, falling to $0.5659, down 0.2% overnight and losing 1.2% over the week, marking its fifth consecutive week of losses. The kiwi dollar is getting close to its 2026 low of $0.5627, with major support around $0.5581. The decline in both currencies could exacerbate import prices and inflation, prompting central banks to pursue further tightening measures. Markets now suggest an 84% probability that the Reserve Bank of New Zealand will raise rates by a quarter point to 3.0% at its next meeting on October 28, ultimately targeting rates of around 4.0%.",
  "summary": "SYDNEY: The Australian and New Zealand dollars were nursing painful weekly losses on Friday as surging US yields buoyed the greenback, while domestic bonds showed some resilience in the face of a vicious global selloff. The losses came despite markets narrowing the odds on further rate rises, with the Reserve Bank of Australia now considered all but certain to hike by 25 basis points to 4.60% at…",
  "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."
}