The Australian dollar climbed to its highest level against the New Zealand dollar since July 8 after Australia reported stronger-than-expected GDP and the Reserve Bank of New Zealand (RBNZ) delivered a less-dovish-than-feared policy stance. The data reduced expectations for aggressive near-term Reserve Bank of Australia rate cuts, while the RBNZ’s unchanged key rate, statement and projections were interpreted as cautious about the pace of future policy normalization. The resulting yield differential favored the Australian dollar. The pair also broke above the July 8 high, a previous resistance level, suggesting stronger buying pressure and a possible medium-term trend shift. Traders are watching for a sustained close above that level and upcoming economic releases from both countries. Stabilizing iron ore and coal prices have added support to Australia’s currency, while New Zealand remains exposed to softer global demand and domestic consumption concerns through its reliance on dairy exports and services.