NAB Research flags a seasonal pattern for AUD and NZD outperforming the USD in July with a low vol. environment a likely supporting factor.
"Looking at the AUD and NZD monthly performance over the past 10 years, a seasonality analysis suggest both antipodean currencies have a tendency to outperform in the months of July...In 7 of the past 10 Julys, the AUD rose against the USD. The NZD record is slightly better than AUD, rising in 8 of the past 10 Julys," NAB notes.
"What could be the cause of this seasonality? Hard to tell with certainty, but one suggestion could be that July is the peak northern hemisphere holiday period, typically associated with a lower volatility environment," NAB adds.