Aussie and Kiwi Rise as Markets Suspect Japan Intervention

The Australian dollar and New Zealand dollar rose to multi-week highs on Monday as markets suspected Japan was intervening in the currency market again. The Aussie added 0.3% to $0.7041, reaching a seven-week high of $0.7069 before falling back slightly.

Meanwhile, the kiwi dollar firmed 0.1% to $0.5894, just shy of its two-month peak at $0.5905. The Aussie's gain was tempered by its loss against the yen, which fell 0.8% to a four-month low at 109.34.

Ray Attrill, head of FX Strategy at NAB, attributed the market's moves to intervention by Japan, saying that 'we are unlikely to see new cycle highs for USD/JPY and most JPY crosses' due to the threat of intervention.

The Aussie lost more than 3% on the yen last week after the US Treasury joined Japan in intervening. Attrill predicts a range of 155-162 for the yen against the dollar, and 108-113 for the Aussie against the yen.