Business · Markets · 1 hr ago
Australian and New Zealand dollars hold firm as euro faces pressure
The Australian and New Zealand dollars held firm on Tuesday, while political concerns after riots in France pressured European currencies.
The Australian dollar was at 69.77 US cents, and the New Zealand dollar was at 56.65 US cents.
Investors are watching whether central banks raise interest rates as they weigh inflation and economic conditions.
In Australia, markets see a one-in-three chance of a rate increase in November, rising to 56% for December.
Australian inflation data due October 28 could shape the decision, with analysts expecting core prices to rise sharply in the third quarter.
The Reserve Bank of Australia’s governor and other officials are due to answer lawmakers’ questions on the same day.
New Zealand’s central bank is expected to decide on a third rate increase this year on October 28, with markets pricing in an 89% chance of a quarter-point rise to 3%.
The Australian and New Zealand dollars held firm on Tuesday as political concerns in France weighed on the euro.
The Australian dollar was flat at $0.6977 after rising 0.5% overnight, while the New Zealand dollar edged up 0.1% to $0.5665.
Investors were awaiting developments on domestic interest rates in both countries.
Australia’s central bank deputy governor was due to face questions about the chance of a fifth rate hike this year.
On October 28, investors were watching for Australian inflation data and a New Zealand central bank rate decision.
- Who
- The Australian and New Zealand dollars, and investors monitoring interest rates.
- What
- The currencies held firm as the euro faced pressure amid political concerns in France.
- When
- Tuesday, October 20, 2026.
- Where
- Foreign-exchange markets; the article reports on trading in Sydney.
- Why
- Gains on European currencies helped the Australian and New Zealand dollars, while investors awaited domestic interest-rate developments.
This story does not have two clearly opposing sides.
The Reserve Bank of Australia’s head of financial markets said the labour market might be loosening a little faster than expected and highlighted upcoming consumer price data.
The Australian dollar was flat at $0.6977 and the New Zealand dollar stood at $0.5665.
Reserve Bank of Australia Deputy Governor Andrew Hauser was due to face questions about the possibility of a fifth rate hike this year.
Australian third-quarter consumer price data were due, and the Reserve Bank of New Zealand was to announce whether it would raise rates for a third time this year.
- Australian dollar
- $0.6977, flat on Tuesday
- New Zealand dollar
- $0.5665, up 0.1% overnight
- Australian inflation
- Third-quarter consumer price data due October 28
- New Zealand rate decision
- Due October 28; markets priced an 89% probability of a quarter-point increase to 3.0%
- RBA cash rate
- 4.60%; markets implied a one-in-three chance of a November hike