Asian Intervention Rattles USD, Sends AUD/USD and NZD/USD Soaring

Audrey and Nicky have broken to fresh highs, fueled by broad-based US dollar weakness following apparent coordinated intervention from Asian foreign exchange authorities.

The biggest driver behind the Australian and New Zealand dollars' outperformance was suspected intervention by Japanese authorities, likely undertaken in coordination with South Korean authorities and with at least tacit support from the United States. The move came with the US dollar already under pressure after the Fed opted against raising rates on Wednesday, providing an ideal backdrop to maximise the impact.

A crucial consideration for traders is that intervention often doesn't occur in one sitting. Japanese authorities stepped into the market over several sessions rather than relying on a single operation earlier this year. If authorities return to the market again, particularly around the Bank of Japan policy decision later today, it would point to renewed upside risks for AUD/USD and NZD/USD.