The Australian dollar rose to its highest intraday level since October 2024, influenced by a weaker US dollar and market expectations of a rate hike in Australia next year.

Driven by the weak US dollar and market expectations that the Reserve Bank of Australia will raise interest rates next year, the Australian dollar hit a new high. The Aussie dollar rose by 0.1% to 0.6708 US dollars, the highest level since October 2024. Due to strong spending and wage data, the Aussie dollar rose by 1.4% in the current quarter, exacerbating the Reserve Bank of Australia's concerns about inflation pressures. Overnight index swaps show a likelihood of over 70% for the Reserve Bank of Australia to raise interest rates twice next year, with the first rate hike possibly happening as early as June.