Australian dollar steadies after setback, rate support intact

Business Recorder reported that the Australian dollar steadied on Monday, ending a two-week slide that followed a more hawkish tilt in US rate expectations. The Aussie traded at $0.7128, barely moved after finishing the previous week 0.6% lower. It remains well below a recent four-month high of $0.7238, with support seen around $0.7075.

Against the kiwi and euro, the Aussie stayed close to multi-year highs. It hovered near a 13-year peak on the New Zealand dollar at NZ$1.2441 and reached a 22-month high against the euro, at A$1.6093. Markets have priced in a fourth Reserve Bank of Australia rate increase this year, which would take the rate to 4.6% next week.

Commonwealth Bank of Australia and ANZ have both shifted their calls to expect a hike next Tuesday. ANZ's Adam Boyton said the Reserve Bank of Australia had several chances to ease expectations of a near-term increase but had not done so. The kiwi was similarly unchanged at $0.5725, having slipped 1.5% in the previous week, and it has support at $0.5705.