AUD Strengthens on Resilient Economy and Hawkish Policy Outlook
The Australian dollar has been trading near its highest level in over three months, holding strong above $0.71 as the country's economy shows resilience.
Recent data revealed that Australia's goods trade surplus narrowed to A$1.9 billion in July from a revised A$2.3 billion in June, but still exceeded expectations of A$1.45 billion. Weaker gold exports and fuel imports contributed to this decline.
However, the economy's performance in the second quarter has reinforced expectations that the Reserve Bank of Australia could resume tightening monetary policy after raising rates three times this year.
Markets have increased the odds of a rate hike this month to 58% from 49% before the GDP release, with some even pricing in a move to 4.60% for November.