Australian dollar near highs on greenback, euro amid rate talk

That kept the Aussie firm at $0.7217 AUD=D3, having touched a four-month top of $0.7225 overnight. The next major targets are the May peak at $0.7277 and a high from mid-2022 at $0.7285, where a break would open the way toward $0.7500.

The Aussie also extended a recent rise on the euro, which slipped to a near two-year low of A$1.6085 EURAUD=. But it lost ground on a broadly firmer yen, slipping 1% overnight to 111.22 yen AUDJPY=R.

The kiwi dollar was off 0.3% at $0.5858 NZD=D3, having run into sizeable selling against the Aussie in recent days as the market pared the chance of further aggressive tightening by the Reserve Bank of New Zealand.

The Aussie reached a fresh 13-year high at NZ$1.2330 AUDNZD=R, with the next chart target up above NZ$1.2600.

The Australian dollar hovered near multi-month highs on the greenback and euro on Tuesday as investors continued to wager on more rate hikes at home, widening yield spreads in its favour.