Australian and New Zealand Dollars Rise on Risk-On Sentiment

The Australian dollar strengthened against major currencies during the Asian trading session on July 10, 2026, reaching a nearly three-week high of 0.6970 against the U.S. dollar. The currency also hit two-day highs against the Japanese yen and the euro. Similar gains were seen in the New Zealand dollar, fueled by a risk-on market mood and rising Asian stock markets, particularly in the semiconductor and AI sectors following an oversubscribed $28 billion SK Hynix IPO in the U.S.

Monetary policy played a significant role in the surge. The Reserve Bank of New Zealand increased its Official Cash Rate by 25 basis points to 2.50%. Meanwhile, the Reserve Bank of Australia has raised rates by 25 basis points three times this year, bringing its Official Cash Rate to 4.35%. Assistant Governor Sarah Hunter indicated that the board would take necessary actions to return inflation to its target.

Global political tensions also eased as investors speculated that hostilities between the U.S. and Iran would remain limited. This sentiment was bolstered by comments from U.S. President Donald Trump regarding Iran's desire to negotiate a deal. Analysts suggest the Australian dollar may face further resistance levels at 0.71 against the U.S. dollar, 1.63 against the yen, and 0.99 against the euro if the uptrend continues.