Australian and NZ dollars rise against the yen but fall against the dollar

The Australian dollar strengthened, marking a rebound after four consecutive sessions of declines. This recovery came after suspected intervention from Tokyo last week, which disrupted the popular carry trade, where investors borrow in a low-interest currency like the yen to invest in higher-yielding assets. The intervention saw the Aussie retreat from a 33-year high reached.

Similarly, the New Zealand dollar also rose after a period of weakness. This movement indicates a renewed interest in the kiwi as traders adjusted their positions.

Read more to find out why Australian and NZ dollars strengthened.