AUD and NZD Plummet to Multi-Month Lows Amid Inflation Worries

The Australian and New Zealand dollars are experiencing a decline in value, reaching multi-month lows. The Aussie is currently trading at US$0.7020 after losing 1.5% last week to hit an eight-week low of US$0.7004.

This marks the third straight week of declines for the AUD/US$, breaking key support at the 200-day moving average of $0.7025. The losses came despite markets narrowing the odds on further rate rises, with the Reserve Bank of Australia now considered all but certain to hike by 25 basis points to 4.60% today.

Joseph Capurso, head of foreign exchange at the Commonwealth Bank of Australia, expects the AUD/US$ to receive some brief support from a 'hawkish hike' by the Reserve Bank on Tuesday, but still predicts it will fall this week, likely testing US$0.6951.