Aussie’s One-Year Rally Versus Kiwi Is Peaking, Strategists Say

The Australian dollar’s year-long rally against its New Zealand counterpart may have topped out, as strategists signal hawkish central bank rhetoric in Wellington is bolstering the kiwi’s appeal.

The pair retreated from a 13-year peak after the Reserve Bank of New Zealand revealed Wednesday that policymakers discussed raising interest rates to combat stubborn price pressures. The cross weakened further Thursday as Governor Anna Breman said the central bank would respond to any acceleration in core inflation with further rate increases.