Aussie Surges to Three-Month High on Rate Hike Expectations

The Australian Dollar has reached a three-month high due to expectations of a rate hike by the Reserve Bank of Australia (RBA). Analysts at Rabobank point out that the Aussie economy remains resilient, with Q2 GDP beating forecasts at 0.4% q-o-q and 2.1% y-o-y.

Rabobank analysts believe this strong growth will likely lead to an RBA rate hike in August. Strategists at the Commonwealth Bank of Australia also agree that a hawkish tone from the RBA could keep the Aussie near 72 cents for most of this week.