AUD/USD bounces-back above 0.75 amid rising bets of earlier RBA rate hike

• AUD/USD recaptures 0.7500 amid hawkish RBA expectations.
• Leading Australian banks bring forward their RBA rate hike calls.
• The aussie April 2024 yields jump, focus shifts to the US Q3 GDP release.

AUD/USD is staging a decent comeback above 0.7500, in a turnaround from daily lows of 0.7480, as the investors shrug off the risk-off market mood amidst rising bets of an earlier rate hike by the Reserve Bank of Australia (RBA).

In evidence of increased hawkish expectations from the RBA, the Australian April 2024 bond yield jumped to 0.5%, five times higher than the central bank’s target of 0.1%. This comes after the country’s RBA Trimmed Mean CPI rose to 0.7% QOQ in Q3 vs. 0.5% expectations and 0.5% last.

Surging price pressures fanned RBA rate hike calls, with the Commonwealth Bank of Australia (CBA) bringing forward its rate hike expectations to November 2022 from previous bets for a May 2023 hike. The bank said that Wednesday’s Q3 CPI data was an inflection point.

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