Australia, NZ dollars extend gains as US Democratic sweep fuels risk rally

The Australian and New Zealand dollars strengthened on Thursday as a weaker US dollar and gains in global equities lifted demand for riskier assets, Business Recorder reported. The Aussie added 0.2% to $0.7019, after rising 0.6% overnight, while the kiwi gained 0.4% to $0.5642 following a similar overnight advance.

A nearly 9% drop in oil prices helped set the tone for the broader market rebound as concerns about an imminent strike on Iran eased. The moves came despite local pressures: Australia’s central bank has raised rates five times this year, while New Zealand’s jobless rate reached an 11-year high of 5.7% in the third quarter. Markets assign a 60% probability to a quarter-point New Zealand rate increase in December; Australian rate swaps imply a 6% chance of a further hike next month.