Australian Dollar (AUD) climbed to 72/100 bullish as ING lifted its AUD/USD target to 0.71 on the back of expected 25 basis point RBA rate hike next week.
Learn why the Aussie surged in the Asia session on twin rate-hike signals from the Reserve Bank of Australia and what technical level traders must defend.
What Happened
The Australian Dollar extended gains Friday after two major financial institutions flagged consecutive rate increases from the Reserve Bank. ING raised its AUD/USD price target to 0.71, explicitly citing a 25 basis point hike anticipated for next week's RBA decision. That call was reinforced by Natixis strategist Garcia Herrero, who noted that the AUD pairs should benefit from back-to-back tightening after hot CPI data confirmed inflation remains sticky in Australia.
The currency strength reflected broader confidence in the RBA's resolve to keep monetary policy restrictive. With core inflation signals persisting above target in the region, the central bank appears locked into a hiking trajectory that distinguishes Australian policy from the more cautious stance adopted by peers elsewhere. This divergence, combined with concrete analyst upgrades, powered AUD to its highest bullish sentiment reading among the eight majors in this session.
“ING lifts AUD/USD target to 0.71 as it backs a 25bp RBA hike next week”— ForexLive
Today's news timeline
- 15:00 UTC
- 21:00 UTC
- 00:00 UTC
- 00:00 UTC
Market Reaction
The broader forex market analysis revealed a striking divergence in central bank narratives. The Japanese Yen posted 68/100 bullish on expectations that the Bank of Japan will hold rates steady at 1.25 percent while signalling a potential December hike, yet the AUD pairs gained more ground, suggesting traders favour the RBA's more aggressive near-term path. The US Dollar scored 62/100 as better-than-forecast Q3 GDP growth underpinned fresh rate-hike bets, but the exchange rate action showed AUD gaining relative to both USD and JPY.
The most tradeable setup emerged in AUD/USD, where the currency strength into 0.7036 and ING's 0.71 target created a defined bullish range. By contrast, the New Zealand Dollar lagged at 48/100 neutral, hampered by broader risk-off sentiment tied to tech earnings disappointment. Gold retreated as US GDP growth exceeded estimates, signalling a shift away from safe-haven demand and towards yield-bearing assets.
What's Driving the Move
Three key threads run through the bullish Australian Dollar story:
- ING's revised AUD/USD target of 0.71 explicitly anchors on a 25 basis point RBA hike expected next week, providing a concrete near-term catalyst.
- Natixis' Garcia Herrero cited hot CPI data as the foundation for back-to-back rate increases, establishing that inflation persistence, not economic surprise, is driving the central bank's tightening path.
- The RBA's hawkish stance stands apart from major peers: while the BoJ plans to hold and the ECB appears nearly done, Australian policy tightening differentiates AUD pairs from broader G10 sentiment.
“RBA set for back-to-back hike after hot CPI, says Natixis’ Garcia Herrero”— ForexLive · 00:00 UTC
What to Watch Next
London traders stepping in at 06:13 UTC will inherit an AUD market near session highs; watch for any cross-asset repositioning during the overlap with New York as the trading week closes.
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Open a live account →How this briefing was written: AI-drafted from real forex news headlines scanned every 3 hours by FXNewsBias, then auto-published on a fixed session schedule. Sentiment scores reflect news flow only, not technical signals or price action. This is information, not financial advice. Always cross-check with your own analysis before trading.