The Australian dollar held around $0.71 after stronger-than-expected economic growth increased expectations that the Reserve Bank could raise interest rates again. GDP expanded 0.4% quarter-on-quarter in Q2, above the 0.3% forecast, while annual growth accelerated to 2.1% against expectations for 1.8%. The data indicated resilient activity despite efforts to cool demand and contain persistent inflation. Markets lifted the probability of a fourth rate hike at the September meeting to 57% from 48%, while a November increase became more than fully priced in. Expectations for another hike in Q1 2027 also rose to 82% from 62%. Higher energy prices linked to potential supply disruptions amid the escalating US-Iran conflict added to inflation concerns, while rising US yields and a stronger dollar limited gains in the Australian currency.