• AUD/USD hit fresh 3-year higher on Thursday as growing expectations of a probable RBA rate hike continue to fuel bullish sentiment for Australian dollar . • Markets expect the Reserve Bank of Australia to deliver a 25-basis-point rate hike next Tuesday after inflation surprised to the upside last quarter. • A rate hike by the RBA next Tuesday would mark the first tightening move by a non-Japan G10 central bank in this easing cycle. •On the domestic front, Australia’s December-quarter trade data showed a stronger external outlook, with export prices rebounding and import prices rising unexpectedly, boosting terms of trade. •Export prices jumped 3.2% q/q in Q4, reversing a 0.9% drop in Q3, while import prices rose 0.9% q/q, beating expectations for a 0.2% fall.