Forex
Aussie Dollar Soars to Near Multi-Month Highs Amid RBA Hawkish Signals
The Australian dollar has been hovering around its multi-month high of $0.72 as investors respond to increasingly hawkish signals from the Reserve Bank of Australia.
RBA Assistant Governor Sarah Hunter emphasized that the board has little tolerance for inflation remaining above target and may need to raise interest rates further if price pressures continue.
Market expectations are now pricing in a 69% chance of a 25-basis-point hike to 4.60% at the September 29 meeting, up from less than 10% just a month ago.
The Aussie dollar has also benefited from broad US dollar weakness and extended gains against the euro, which slipped to a near two-year low.