The pair is supported by the release of firmer-than-expected Australian inflation data, which strengthens the case for an imminent monetary tightening by the Reserve Bank of Australia (RBA). Markets now estimate the chance of a 25-basis-point rate hike at more than 70% as early as the next meeting, according to ASX’s RBA Rate Tracker tool. This rapid repricing of rate expectations is supporting the Australian Dollar (AUD) by improving its relative attractiveness against major currencies. US Treasury Secretary Scott Bessent reaffirmed Washington’s commitment to a strong US Dollar policy, while the Federal Reserve (Fed) kept interest rates unchanged at its latest meeting. Overall, the AUD/USD pair remains primarily driven by shifts in Australian monetary policy expectations.