Australian Dollar Outlook: Aussie Surges as Markets Price in RBA Rate Hike

The Australian dollar has rallied sharply as investors prepare for what could be another decisive move from the Reserve Bank of Australia. Currency markets are increasingly confident the central bank will raise interest rates again as policymakers respond to renewed inflation risks linked to surging energy prices.

The Australian dollar jumped more than 1% overnight to around US70.66¢, reflecting expectations that the RBA will take a tougher stance on inflation than many of its global peers. If the central bank moves as markets expect, it would mark the second rate increase this year and reinforce Australia’s position as. . .