Australian Dollar Climbs to 12-Year High Against Its New Zealand Counterpart

Australia’s dollar climbed to a 12-year high against its New Zealand counterpart, driven by a diverging monetary policy outlook between the neighboring nations.

The kiwi weakened as much as 0.5% to NZ$1.1513 per Aussie, to reach levels last seen in late 2013, after data showed New Zealand’s jobless rate hit a nine-year high in the third quarter.

The Reserve Bank of New Zealand delivered a 50-basis point interest rate cut on Oct. 8 and signaled it’s open to easing to shore up a struggling economy. In contrast, the Reserve Bank of Australia left its cash rate unchanged on Tuesday and dampened hopes for near-term policy easing.