AUD/USD Nears 72c as Jackson Hole Looms and Inflation in Focus

The Australian dollar has seen its strongest week in 18 weeks, reaching an 11-week high of AUD/USD at 72c. This rally follows the US Treasury's surprise buyback plan, which put downward pressure on the US dollar.

Looking ahead to this week, market attention will shift to the Jackson Hole symposium, particularly Kevin Warsh's speech as Fed Chair. While previous speeches have signaled major policy shifts, traders expect Warsh to focus on defining how the Fed operates rather than providing a clear signal for the next rate decision.

The RBA cash rate futures imply just 15bp of tightening by April, with a 60% chance of a single hike. However, if trimmed mean inflation ticks higher, this could shift the odds in favor of an earlier hike.