Aussie dollar lifts above $0.72 on more hawkish RBA signals
The Australian dollar edged above $0.72 toward a four-month high as hawkish RBA signals strengthened expectations for another rate hike. Markets priced a 74% probability of a 25-basis-point hike at the September 29 meeting.
72 and moved toward a four-month high as the Reserve Bank of Australia delivered increasingly hawkish signals that reinforced expectations for another rate hike this month. Deputy Governor Andrew Hauser said late Tuesday the central bank will debate the case for higher rates at its September meeting, citing persistently high inflation and upside risks. Assistant Governor Sarah Hunter said the RBA has little tolerance for stronger inflation and may need to raise rates for a fourth time this year. The central bank has already increased its cash rate three times in 2026, after surging oil prices linked to the Gulf conflict pushed inflation higher.
Markets are pricing a 74% probability of a 25-basis-point hike at the September 29 meeting, up from less than 10% a month ago, while a November move is fully priced in. Stronger trade data from China also supported the Aussie, which is often seen as a proxy for the Chinese economy. China is Australia’s largest trading partner.