The Australian dollar has reached a three-year peak, trading at $0.7122, driven by expectations of further rate hikes by the Reserve Bank of Australia (RBA). As reported by Business Recorder, the RBA recently increased its cash rate to 3.85%, and market speculation suggests a 70% probability of a further rise to 4.10% in May. This optimism is fueled by robust economic indicators, such as a 9.5% jump in mortgage lending in the fourth quarter. The sentiment around the Australian dollar is positive, with OCBC's Moh Siong Sim forecasting an end-year value of $0.73, up from $0.69, highlighting the RBA's hawkish stance as a key driver. Meanwhile, the New Zealand dollar remains firm at $0.6059, with expectations of a steady rate from the Reserve Bank of New Zealand, as noted by Westpac's Kelly Eckhold, who anticipates rate hikes beginning in December 2027.