AUD Surges Above 0.7200 as RBA Hike Odds Rise and Fed Rate Bets Fall

The Australian Dollar (AUD) strengthened to 0.7210 against the US Dollar (USD) in early European trading on Friday, as markets reacted to Federal Reserve Governor Christopher Waller's comments.

Waller indicated that he will support holding rates steady at the September meeting of the Fed, which reduced bets on a US rate hike this month.

Australia's economy grew faster than expected in Q2, raising the prospect of an interest rate hike by the Reserve Bank of Australia (RBA) to about 70%, up from 50% ahead of the data.