Australia, NZ Dollars Rise as Oil Prices Fall Amid Diplomatic Efforts
The Australian and New Zealand dollars have strengthened following diplomatic efforts to resolve the Middle East conflict. Lower oil prices eased inflation concerns, boosting global bond markets. The Aussie rose by 0.2% to $0.7001 after gaining 0.3% on Friday.
It has moved away from a three-month low of $0.6867 and is now seen with resistance at the one-month peak of $0.7026. The New Zealand dollar added 0.2% to $0.5798, but resistance is now seen at the 200-day moving average of $0.5822.
The gains were supported by a stronger-than-expected jobs report, which led markets to almost fully price in a fourth interest-rate increase from the Reserve Bank of Australia this year. However, inflation remains above target, and the RBA could still judge that more tightening is needed.