The Australian dollar (AUD) and New Zealand dollar (NZD) extended their winning streak on Thursday. This rise followed a U.S. announcement on tariff relief for automakers. Meanwhile, the euro's unexpected strength pushed the U.S. dollar (USD) to a four-month low.
The AUD climbed 0.3%, reaching $0.6354, its highest level in a week. It has now gained for four consecutive sessions, recovering from a recent low of $0.6185. Similarly, the NZD rose 0.3% to $0.5743, also a one-week peak, after surging 1.1% the previous day.
The U.S. dollar's decline continues as the euro surged 4% this week. This increase followed Germany’s decision to create a €500 billion ($540.3 billion) infrastructure fund and adjust borrowing limits. As a result, the greenback struggled to recover.
According to IG analyst Tony Sycamore, AUD/USD could climb further toward its 200-day moving average, near $0.6500. A sustained break above this level may signal the end of the AUD's recent downtrend.
However, some analysts believe the USD could regain strength soon. Data showed that the U.S. services sector expanded unexpectedly in February. This development eased concerns about an economic slowdown, which could support a dollar rebound in Q2.
Australian economic data also boosted sentiment. In January, Australia’s trade surplus widened, fueled by a sharp rise in gold exports. Additionally, home building approvals jumped 6.3%, signaling potential growth in the construction sector.
Across the Tasman, the Reserve Bank of New Zealand (RBNZ) faced uncertainty. Acting RBNZ head Christian Hawkesby acknowledged the challenges of setting policy. His statement came just a day after Governor Adrian Orr’s unexpected resignation.
Market sentiment suggests further gains for AUD/USD and NZD/USD if current trends persist. However, U.S. economic data and central bank policies will continue to play a crucial role in determining future currency movements.
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The Australian and New Zealand dollars hit one-week highs after U.S. tariff relief and euro strength. Read more about Forex market trends.
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