Australia’s dollar slid to a five-year low versus the New Zealand currency before the bigger nation’s Reserve Bank deputy governor speaks tomorrow amid speculation his central bank will curb strength in the currency.
The Aussie touched a 2 1/2-month low on Nov. 22 against the U.S. dollar, the day after Reserve Bank of Australia Governor Glenn Stevens said he remains “open-minded” on currency intervention. New Zealand’s kiwi gained against all 16 major peers as swap rates climbed to a two-year high amid bets the nation’s central bank will raise borrowing costs next year.
“The RBA’s stance of containing currency strength is very clear, so some caution is needed” against remarks from RBA speakers, said Kengo Suzuki, the Tokyo-based chief currency strategist at Mizuho Securities Co., a unit of Japan’s third-biggest financial group by market value. Aussie-kiwi may fall further “when the prospects for a New Zealand rate hike get clearer next year.”