Antipodean currencies are the growth leaders on the currency market

Tuesday's session on international markets, although it will not bring investors any macroeconomic publications worth attention, shows some signs of capital relocation. The currencies of the Antipodes, i.e. the Australian dollar and the New Zealand dollar, are the best performing currencies of highly developed countries in the perspective of today's session, the entire week and even the month.

The strength of these currencies is primarily the result of a strong commodity market (these currencies are part of the so-called commodity currencies) and the hawkish Rebuildables. Australia, as one of the world's key producers on the gold market, has recently been benefiting from the strength of this metal. Recall that gold is continuously trading at its historic highs. This, combined with the RBA's hawkish stance on possible interest rate cuts, significantly supports the AUD and, given the strong trade relations with New Zealand, also the country's currency. Money markets are currently seeing the first RBA interest rate cut in September this year.

Dovish attitude of central banks

On the other side of the barricade there is the Swiss franc and the Japanese yen. For these currencies, the main initiator of the declines are issues opposite to those observed on the Australian market, i.e. the dovish attitude of central bankers. The media echo in this matter mainly focuses on the franc, which in relation to the Polish zloty has been recorded at the lowest levels since February 2022, compared to unexpected reduction of interest rates by the SNB two weeks ago and lower CPI readings in this country (a week ago).

The above-mentioned Antipodean Currencies are currently performing particularly well on the broad market. The Swiss franc is experiencing greater declines in particular. Weekly and even monthly trends in this matter are still maintained. The Polish zloty is falling this morning. We will currently pay PLN 3,9320 for the dollar, PLN 4,2667 for the euro, PLN 4,3433 for the franc, and PLN 4,9717 for the pound.

Source: Mateusz Czyżkowski, XTB