AUD Weakens Below 0.7150 as Markets Anticipate US Fed Rate Hike

The Australian Dollar (AUD) weakened below 0.7150 as markets prepared for the US Federal Reserve's interest rate decision on Wednesday.

Markets are pricing in a near-92% chance of a 25-basis-point increase, which would provide a modest boost to the US Dollar (USD).

Australia's central bank, the RBA, has held its Official Cash Rate at 4.35%, but expectations are growing for further interest rate increases due to stubbornly high underlying inflation.