Interest Rate Speculators Drive NZD USD Higher

The AUD USD and NZD USD seem to be ignoring the lack of demand for higher yielding assets today and instead are rallying on the possibility of interest rate hikes in Australia and New Zealand.

The AUD USD and NZD USD seem to be ignoring the lack of demand for higher yielding assets today and instead are rallying on the possibility of interest rate hikes in Australia and New Zealand. Traders are fairly certain the Reserve Bank of Australia will raise rates in November based on hawkish comments from RBA chief Stephens. Heavy speculation that the Reserve Bank of New Zealand will raise rates sooner than expected helped drive the New Zealand Dollar to a 15-month high.