Aussie Surges as RBA Hikes Rate Expectations
The Australian Dollar has gained 0.3% against the U.S. Dollar to trade at 0.7129 on Friday, driven by a hawkish pivot in RBA rate-hike expectations.
RBA Governor Michele Bullock stated that upside inflation risks are materialising due to rising Middle East oil prices, global AI investment boom, and extreme weather.
Bullock's comments sent market-implied odds of a September 29 RBA rate hike surging to 93%, with the expected terminal rate reaching 4.85% by early 2027.