AUD/USD Tumbles on US Rate Hike Fears as Warsh Signals Tightening

AUD/USD pair falls to near 0.7160 as US Dollar strengthens after Fed's Warsh signals possible rate hikes.

The Federal Reserve Chair Kevin Warsh hinted at potential interest rate increases if inflation doesn't return to the central bank's target of 2% in his speech at the Jackson Hole symposium on Friday.

Markets are now pricing in a nearly 57.5% chance of at least 25 basis points at the Fed's September meeting, according to the CME FedWatch tool.