AUD/USD Tests 0.7200 Amid Rising RBA Hike Bets and US Jobs Report Expectations

The Australian dollar (AUD/USD) has been trading above the key 0.7200 level, driven by robust domestic economic growth and expectations of a Reserve Bank of Australia (RBA) interest rate hike later this month.

Recent data from the Australian Bureau of Statistics showed the economy growing 0.4% in the June quarter, surpassing economist forecasts and increasing the prospect of an RBA rate hike to around 70%, up from a coinflip before the release.

The U.S. employment report for August is expected to have a significant impact on the AUD/USD's next major test, with a stronger-than-expected print potentially pausing the pair's recent bullish bias due to Greenback strength and expectations of a Federal Reserve rate hike later this month.