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2025-09-15 13:10:35
[Australian Dollar and New Zealand Dollar Face "Super Central Bank Week," Bullish Trend Expected to Continue] 1. The Australian dollar and New Zealand dollar are poised for a "super central bank week" this week. Markets widely expect the Federal Reserve to resume easing policy, and the focus has shifted to the extent and pace of subsequent rate cuts. AUD/USD rose 0.2% to 0.6662 on Monday, just below the 10-month high of 0.6668 reached last Friday. Since its late-August low, the pair has rebounded nearly 4%, and bulls are targeting the November high of 0.6687, a breakout that could see further gains above 0.67. 2. "Against the backdrop of a simultaneously improving global and domestic economic environment, AUD/USD is expected to continue its strength this week, potentially even breaking through the weak resistance level of 0.67," said Joseph Capurso, Head of International Economics at Commonwealth Bank of Australia. Expectations of US interest rate cuts and income tax cuts are boosting the global economic outlook, providing support for currencies like the Australian dollar. Furthermore, recent solid domestic economic data has fueled expectations that the Reserve Bank of Australia will slow its easing pace, contributing to the Australian dollar's strength. 3. NZD/USD also rose 0.2% to 0.5965, extending last week's 1.1% gain, but still some distance from the previous multi-month high of 0.6120. The market is focused on New Zealand's GDP data to be released on Thursday. It is expected that the economy may shrink by 0.3% in the second quarter, which may increase the demand for a new round of economic stimulus. It is generally expected that the Reserve Bank of New Zealand will cut interest rates twice before the beginning of next year. The current benchmark rate is 3%. 4. Kiwibank Chief Economist Jarrod Kerr pointed out that "the current 3% interest rate is only at a neutral level and is not enough to effectively stimulate the economy. However, if the interest rate falls below 3%, substantial stimulus may be initiated and the economic outlook is expected to become brighter."
