Aussie Marches Towards Four-Month High on Hawkish RBA Signals

The Australian dollar is making strides towards a four-month high, reaching above $0.72 as the Reserve Bank of Australia (RBA) continues to signal hawkish policies.

Deputy Governor Andrew Hauser stated that the central bank will discuss the possibility of higher rates at its September meeting, citing persistent inflation and upside risks.

Assistant Governor Sarah Hunter reinforced this stance, emphasizing the RBA's limited tolerance for stronger inflation and the potential need to raise rates for a fourth time in 2026.

The central bank has already increased its cash rate three times this year due to surging oil prices linked to the Gulf conflict.