Yen squeezed as hawkish turn grips central banks

Reserve Bank of Australia Governor Michele Bullock is likely to strike a hawkish tone at a fireside chat scheduled later on Tuesday with markets pricing a 90% chance of a rate hike next week, the country's fourth this year. 0#AUDIRPR

The Aussie dollar AUD= hovered at $0.7120. Sterling GBP= traded around $1.3372. GBP/

The New Zealand dollar NZD= was pinned near multi-month lows at $0.5708 since kiwi rates, sitting at 2.75%, are much lower than peers. NZD/

"Kiwi price action looks weak as higher-yielding currencies benefit from better carry," ANZ analysts said in a note.

"Even with markets expecting about five more official cash rate hikes, that still would not take the OCR anywhere near the US federal funds rate or the RBA cash rate, both of which are expected to keep rising."