Aussie and Kiwi Dollars Ride Japanese Intervention Wave

The Australian and New Zealand dollars gained strength on Friday after Japanese intervention in the foreign exchange market helped boost the yen, causing the greenback to decline.

This move was particularly beneficial for Aussie bulls, who had been struggling since a benign inflation report led investors to abandon bets for a near-term interest rate hike.

The Australian dollar rose 1.1% overnight to reach a six-week high of $0.7033, breaking the resistance level of $0.7026 and opening the way to $0.7088.

The kiwi dollar also jumped 1.5% overnight to a two-month high of $0.5882, with the break of $0.5873 targeting the May high of $0.5993 if sustained.