The Australian dollar moved above $0.72 toward a four-month high as increasingly hawkish Reserve Bank of Australia signals strengthened expectations for a fourth 2026 rate increase at the September 29 meeting. Deputy Governor Andrew Hauser said the RBA had not predetermined its decision, while Assistant Governor Sarah Hunter said the bank had little tolerance for stronger inflation. Markets later priced a 74% probability of a 25-basis-point increase, up from less than 10% a month earlier, and fully priced a November move; an earlier pricing snapshot put the September probability at 68% and the chance of rates reaching 4.85% next year at 60%. Australia’s 10-year government bond yield approached 5.2%, near its highest level since mid-2011, while the UK 10-year gilt yield also reached about 5.2% as markets priced Bank of England increases by December and March 2027. Australian inflation, Middle East energy risks, fiscal concerns and stronger Chinese trade data shaped the outlook.