AUD Holds Near 13-Year High Against NZD on Diverging Rate Outlooks

The Australian dollar held steady near its 13-year high against the New Zealand dollar on Thursday, as markets bet on diverging rate outlooks between the Reserve Bank of Australia and the Reserve Bank of New Zealand.

Despite reaching a peak of NZ$1.2285 overnight, the Aussie slipped 0.1% to NZ$1.2227 against its Kiwi counterpart. The Australian dollar's strong performance is attributed to market expectations that the RBA will keep interest rates high for longer than the RBNZ.

The kiwi, meanwhile, lost ground to a surging yen amid suspected Japanese government intervention. This move further weighed on the NZD against the AUD.