Australia, NZ dollars near multi-week peaks as greenback creaks

Business Recorder reported that the Australian and New Zealand currencies were trading close to their highest levels in several weeks on Tuesday, as the US dollar softened, even though US Treasury yields jumped. The Aussie traded at $0.7111 after touching a 10-week peak of $0.7129 overnight, while the kiwi stood at $0.5904 following a 10-week high of $0.5926. Talk of moving away from the US currency has resurfaced.

Deutsche Bank strategist Tim Baker said some recent US data missed forecasts while news from other developed economies improved. He said this weakens the view of US growth exceptionalism, though he stressed the country is not struggling. He noted the dollar often lags when growth looks solid elsewhere. The Reserve Bank of Australia kept rates at 4.35% after three hikes this year, and a Tuesday survey showed local consumer confidence jumping this month.

The Aussie also gained on the yen, reaching 113.27, a rebound from a 109.19 low after Japan and the US intervened in late July. Employment data due Thursday is forecast to show a 15,000 gain in July, after June's 76,300 rise. Australian 10-year yields rose to 5.047%, up 6 basis points over two sessions, with its premium over US debt at 32 basis points. The government is also selling a new 2038 bond, while Alphabet plans its first Australian deal, potentially the largest corporate issue ever for the country.