Aussie Holds Near 12-Week Peaks Amid Rate Hike Bets

The Australian dollar has maintained its strength near 12-week highs after inflation and spending data revealed resilient consumer demand. The Aussie rose by 0.2% to $0.7184, with analysts tipping a rate hike from the Reserve Bank of Australia (RBA) next month.

Australia's household spending jumped 1.1% in July, while hot inflation reports have swap markets pricing a rate hike as a coin toss at 53% probability.

Jessie Cameron, an economist at National Australia Bank, said the strong spending data could reinforce concerns about elevated inflation if prices are driving growth.