While the possibility of a rate cut by the Reserve Bank of Australia at its next meeting in August has increased this month, it hasn’t stopped traders from doubling their long positions on the nation’s currency. They’re choosing Australia over neighboring New Zealand in the hunt for yield amid negative rates in parts of Europe and Japan. In the competition between the two high-yielding countries, traders are betting the Reserve Bank of New Zealand will drop rates more than Australia.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE