The New Zealand dollar held steady against a strong US dollar, buoyed by unexpected local retail sales growth and hawkish signals from the Reserve Bank of New Zealand, delaying rate cut expectations until late 2025.
The Australian dollar remained flat, influenced by lower commodity prices.
With reduced expectations for a Fed rate hike, New Zealand's rate cut probabilities for October decreased, favouring November instead.
The Kiwi strengthened against the Aussie amid expectations of diverging rate outlooks, reaching a two-month high.