Aussie dollar hits 13-year peak on NZD
Full story: https://grafa.com/en/news/australia/aussie-dollar-hits-13-year-peak-on-nzd
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The Australian dollar reached a 13-year high of NZ$1.23 against the New Zealand dollar.
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The Aussie dollar held steady at $0.72 against the US dollar while gaining 1% overnight against the kiwi.
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Diverging central bank interest rate policies between Australia and New Zealand are driving the currency pair.
The Australian dollar reached a 13-year peak of NZ$1.23 against the New Zealand dollar following shifting interest rate expectations across the Tasman.
The 1% overnight jump represented the currency pair’s largest single-day gain since April 2025.
The New Zealand dollar fell after the Reserve Bank of New Zealand issued a dovish rate outlook, while stronger domestic data raised bets that the Reserve Bank of Australia will increase interest rates to 4.85%.
Following the announcement, the Australian dollar share price was unchanged at $0.72 against the US dollar.
Both regional currencies experienced selling pressure against the Japanese yen amid market speculation regarding currency intervention by Japanese financial authorities.
Traders are pricing in a 55% probability of a fourth interest rate increase by Australian policymakers at their late September meeting.
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