AUD Surges on Rising Rate Hike Bets

The Australian Dollar (AUD) has been on a winning streak for four consecutive days, trading around 0.7200 during Asian hours on Friday.

This appreciation is largely due to rising Reserve Bank of Australia (RBA) rate hike bets, which have strengthened the AUD's support.

Several major banks, including National Australia Bank (NAB), Commonwealth Bank of Australia (CBA), and ANZ, have revised their cash rate forecasts in response to the hotter-than-expected July inflation report.

The RBA's policy outlook has tightened, with a 50% chance of a rate increase at its September meeting, up sharply from 17% previously. Fully pricing in a November hike, financial markets have adjusted accordingly.