SYDNEY: The Australian and New Zealand dollars hit fresh four-month highs on Monday as markets wagered on early and aggressive rate cuts in US, while all eyes were on the outcome of a policy meeting in Australia this week.
The Aussie touched a four-month high of $0.6690, after rallying 1.4% last week in the third straight week of gains. The currency climbed 4.2% in November and has support at the 200-day moving average of $0.6580.
The kiwi hit $0.6222, also a four-month high, having gained 2.1% last week. It climbed 5.7% in November, guided higher by a surprisingly hawkish Reserve Bank of New Zealand as it forecast rate hikes were not over.
The Antipodeans’ winning streak was stoked by wagers the next move by the Federal Reserve will be to lower rates, with Fed Chair Jerome Powell on Friday declining the opportunity to push back hard against aggressive market pricing for cuts.
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