Australian dollar stumbles as AI trade sputters, kiwi steadies after rate rout

The Australian dollar slipped on Friday as a retreat in technology shares weakened demand for risk-sensitive assets, while the New Zealand dollar steadied after the Reserve Bank of New Zealand left its policy rate unchanged. Business Recorder reported the Aussie at $0.7025, following a 0.4% decline overnight, and the kiwi at $0.5630 after a 0.1% gain.

The Australian currency was little changed over the week, with markets assigning an 80% chance to a Reserve Bank of Australia increase to 4.85% next Tuesday. That probability had been 25% a couple of weeks earlier, following stronger inflation data and hawkish policy comments. The kiwi remained on track for a 1.2% weekly fall after Wednesday’s decision to hold at 2.75%, despite signals that further increases could follow. Markets now put the chance of a December increase at 76% and see rates reaching 3.75% or higher.