AUD Eyes Longest Weekly Gain Since 2010 as CPI Fuels Rate‑Hike Speculation

The Australian dollar is hovering around $0.72, close to a fifteen‑week high, and is on track for a ninth straight weekly rise – the longest such streak for the currency since 2010. The rally follows a hotter‑than‑expected July inflation reading and a 1.1% jump in household spending, signalling robust domestic demand even as borrowing costs climb.

The stronger economic backdrop has pushed traders to accelerate bets on an RBA tightening. Several major banks have updated their outlooks: NAB now projects the cash rate to climb to 4.6% next month, while CBA and ANZ see a possible move in November but leave room for an earlier hike.

Market pricing reflects a sharp rise in the probability of a rate increase at the September meeting – now about 50% versus 17% previously – and a November hike is fully priced in.

Investors are now eyeing Q2 GDP and employment figures for further clues on the policy trajectory.