The Australian dollar held below $0.72 but remained near its highest level since early June and on track for its second consecutive monthly gain amid growing odds of an imminent interest rate hike. Markets now priced in a 52% probability that the fourth rate hike this year could come as soon as next month, up sharply from 17% previously, while a November move is fully priced in. The stronger outlook for tighter policy came after a hotter-than-expected July inflation report and resilient household spending data, prompting several major banks to revise their forecasts. NAB sees a possible move as early as the September 29–30 meeting, while CBA and ANZ expect a hike in November but acknowledge the possibility of earlier tightening. Meanwhile, the US dollar broadly advanced after Federal Reserve Chair Kevin Warsh struck a hawkish tone at the Jackson Hole symposium last week in his debut speech, saying policymakers may need to take further action if inflation remains elevated.