AUD/USD Faces Hawkish Policy Bounce in Q4

The Australian dollar enters Q4 under the influence of monetary policy from both Australia and the US.

The Reserve Bank of Australia (RBA) is expected to deliver at least one more interest rate hike, while the Federal Reserve has already resumed tightening, with markets pricing in a 76% chance of another hike in October and a 59% probability of rates reaching 4.25-4.50% by December.

Australia's economy continues to slow down, but persistent inflation remains a concern for policymakers, with trimmed mean inflation at 3.6% year-on-year.