Aussie Soars Near Four-Month Peak on Diverging Rate Outlook

The Australian dollar has been steadily climbing, hovering near its four-month peak at $0.7202 as traders wait for upcoming central bank appearances and US inflation data to determine if its upward trend will continue.

Last week, the Aussie gained 0.6% to resume its climb from a low of $0.6867 in June, but it's facing resistance at Friday's high of $0.7214. The next major test for the currency lies at the 2026 high of $0.7277.

The kiwi dollar, on the other hand, has been struggling, down 0.2% at $0.5871 after falling 0.6% last week to fade away from its recent top of $0.5988. The Reserve Bank of New Zealand's dovish stance is largely to blame, with markets now pricing in an 80% chance for a policy pause next month.

The differing rate outlook between the RBNZ and RBA has kept the Aussie elevated near a 13-year high at NZ$1.2268. Analysts at the Commonwealth Bank of Australia expect the Aussie to remain near 72 cents this week, especially if RBA Deputy Governor Andrew Hauser or Assistant Governor Sarah Hunter sound hawkish.