AUD Rises on Hike Odds; USD Falls as Fed Doves

The Australian Dollar (AUD) has strengthened as market probabilities for a Reserve Bank of Australia (RBA) rate hike this month rose to 58% from 49% before the GDP release. The RBA's decision to raise interest rates earlier this year suggests that it may continue with monetary tightening, supporting the AUD.

The US Dollar (USD) has faced pressure after Federal Reserve Governor Christopher Waller indicated a preference for holding interest rates steady at the upcoming September meeting. This dovish tone contrasts with the hawkish comments from Chairman Kevin Warsh last week, causing market-implied probabilities of a Fed rate hike in September to drop to 50.2%.