Aussie, Kiwi Dollars Firm Amid Shipping Deal Hopes

The Australian and New Zealand dollars have held firm near multi-week highs as investors look for a deal to boost shipping through the Strait of Hormuz. This has underpinned risk assets, with bonds benefiting from lower oil prices.

Australia's trade numbers showed a surprise surplus of A$1.9 billion in June, when analysts had expected a deficit of A$1.1 billion. The country's gold exports jumped 60% to A$7.2 billion, which coincided with record month of exports to China, up 38% from last year.

Despite this positive data, markets remain cautious ahead of the Reserve Bank of Australia's meeting next week. Analyst Carl Ang from MFS Investment Management expects a 'hawkish hold' but notes that rate hike risks are priced low. There is only a one-in-five chance of a hike, and disinflation is proceeding too gradually to rule out further tightening in the current cycle.

The kiwi dollar was slightly firmer at $0.5892 after easing 0.1% overnight following a mixed report on employment. The Reserve Bank of New Zealand is expected to hike rates next month, with investors betting it will reach 3.0% by December.