Australia's Aussie and Kiwi Ditch Greenback Strength as Yen Climbs

The Australian and New Zealand dollars rose to multi-week highs on Monday as markets suspected Japan was intervening again to lift the yen versus the greenback.

Australian bonds also outperformed their US counterparts, narrowing the spread over Treasuries to its smallest since November last year.

Ray Attrill, head of FX Strategy at NAB, said 'all we can say, with some confidence, is that we are unlikely to see new cycle highs for USD/JPY and most JPY crosses, given the now ever-present threat of intervention.'

The Aussie lost more than 3% on the yen last week after the US Treasury took the rare step of joining Japan in intervening.