Aussie targets $0.6871 on strong inflation data meanwhile kiwi gains on confidence boost

The Australian and New Zealand dollars have held firm near their eight-month highs, driven by a weakening U.S. dollar and momentum from technical buyers aiming to push through chart resistance levels. The Australian dollar (AUDUSD) currently trades just below its recent peak. This upward movement has been bolstered by the July inflation data, which exceeded market expectations, reinforcing the Reserve Bank of Australia’s (RBA) stance that a rate cut is unlikely this year. The market has responded by lowering the probability of a November rate cut to 42%, down from 56% before the data was released. However, the likelihood of a December rate cut remains high at 88%, as the U.S. Federal Reserve is expected to have cut rates twice by then.

Learn more about the reasons behind the AUDUSD and NZDUSD rising.