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Aussie strengthens against the Kiwi and Yen amidst diverging rate outlooks

The Australian dollar is showing robust performance against both the New Zealand dollar and the Japanese yen. This surge we believe is largely driven by contrasting monetary policy expectations in Australia and New Zealand. The Australian dollar (AUDUSD) stood strong, and this strength followed the Reserve Bank of New Zealand’s (RBNZ) unexpected signal of potential rate cuts, which has weighed heavily on the kiwi. Market resistance for the Aussie is at NZ$1.1088, matching the high from February. Read here to know more about how RBNZ dovish stance impacts Australian rate expectations.

why AUDUSD strengthens

Disclaimer:

Traders should be wary of the potential for sudden market shifts due to ongoing political and economic developments, while managing proper risk management along the way.

Publication date:

2024-07-21 10:17:42 (GMT)

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