{"id":15210,"date":"2024-10-03T03:31:18","date_gmt":"2024-10-03T03:31:18","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15210"},"modified":"2024-10-03T03:31:18","modified_gmt":"2024-10-03T03:31:18","slug":"aussie-hits-2-month-high-against-yen-kiwi-struggles-on-policy-divergence","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/aussie-hits-2-month-high-against-yen-kiwi-struggles-on-policy-divergence\/","title":{"rendered":"Aussie Hits 2-Month High Against Yen, Kiwi Struggles"},"content":{"rendered":"\n<p><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Australian dollar surged 2% to 101.25 yen after Japanese PM shifted stance on interest rates.<\/li>\n\n\n\n<li>The New Zealand dollar fell to $0.6237 as markets priced in a 50-bps rate cut at the next RBNZ meeting.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The Australian dollar surged 2% overnight to reach 101.25 yen, breaking through the 100.00 resistance barrier. This surge came as <a href=\"https:\/\/www.vtmarkets.com\/market_analysis\/week-ahead-ishiba-to-reshape-the-japanese-economy\/\">Japan&#8217;s newly appointed Prime Minister, Shigeru Ishiba<\/a>, signalled opposition to further interest rate hikes, a shift in stance from his earlier hawkish position. <\/p>\n\n\n\n<p>The yen weakened broadly across markets, helping the Australian dollar to rally.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/AUDJPY-3Oct-1024x463.jpeg\" alt=\"\" class=\"wp-image-15211\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\">See: The AUDJPY chart shows a bullish trend on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/p>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\"><strong>Aussie faces resistance at 19-month high as traders remain cautious<\/strong><\/h1>\n\n\n\n<p>Against the U.S. dollar, the Aussie showed a more tempered performance, hovering just below $0.6870, after finding support at $0.6850. Resistance remains firm at the recent 19-month high of $0.6942. <\/p>\n\n\n\n<p>Traders seem cautious, with the currency\u2019s movement suggesting that the dollar remains resilient, limiting the Aussie\u2019s upward potential in the short term.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Kiwi under pressure as markets price in RBNZ cuts<\/strong><\/h2>\n\n\n\n<p>In contrast, the New Zealand dollar continues to face challenges, slipping 0.3% overnight to $0.6237, a level not seen for six weeks against the Australian dollar. <\/p>\n\n\n\n<p>Markets are now fully pricing in a 50-basis-point cut in the <a href=\"https:\/\/x.com\/markets\/status\/1840933562310148284\">Reserve Bank of New Zealand\u2019s (RBNZ) next meeting on October 9<\/a>, with expectations rising for further cuts at the November and February meetings. <\/p>\n\n\n\n<p>The RBNZ\u2019s more aggressive easing stance, compared to the Reserve Bank of Australia\u2019s (RBA) more measured approach, has kept the kiwi dollar under pressure.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">New Zealand\u2019s central bank will have to weigh signs of slowing inflation against a rebound in business confidence when it decides how much to cut interest rates by next week <a href=\"https:\/\/t.co\/QPkkskvqWz\">https:\/\/t.co\/QPkkskvqWz<\/a><\/p>&mdash; Bloomberg Markets (@markets) <a href=\"https:\/\/twitter.com\/markets\/status\/1840933562310148284?ref_src=twsrc%5Etfw\">October 1, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>While the RBNZ seems poised to move quickly, the RBA is projected to hold off on any cuts until at least December, with only a 16% chance of a November cut. <\/p>\n\n\n\n<p>Sticky core inflation is likely to delay any decisions, with markets pricing in a reduction to 3.35% by the end of 2025 from the current 4.35%. This contrasts with the expected U.S. rate of 2.93% and the EU\u2019s anticipated rate of 1.69%.<\/p>\n\n\n\n<p><strong>Previously, in case you missed: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/australian-dollar-hits-19-month-peak-kiwi-reaches-yearly-highs\/\">Australian Dollar Hits 19-Month Peak, Kiwi Reaches Yearly Highs<\/a><\/strong><\/p>\n\n\n\n<p>The divergence in monetary policies is also evident in the euro\u2019s performance against the Australian dollar. The euro slid to a three-month low of A$1.6002, with dovish remarks from European Central Bank officials reinforcing expectations for two additional rate cuts by the end of the year. <\/p>\n\n\n\n<p>The Australian dollar\u2019s strength, in contrast to the euro\u2019s weakness, suggests traders are positioning for prolonged policy differences between the regions.<\/p>\n\n\n\n<p><strong>Start trading now \u2014 click <\/strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\"><strong>here<\/strong><\/a><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Australian dollar surged 2% overnight to reach 101.25 yen, breaking through the 100.00 resistance barrier. This surge came as Japan&#8217;s newly appointed Prime Minister, Shigeru Ishiba, signalled opposition to further interest rate hikes, a shift in stance from his earlier hawkish position.  -vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[39,12],"class_list":["post-15210","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-aussie","tag-forex"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15210"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15210\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}