Australian dollar hits four-month high as rate risks shift

Aussie breaks $0.7208, targets 2026 top of $0.7277

Market narrows odds on September rate hike from RBA

Aussie hits 13-year high on kiwi after RBNZ sounds dovish

By Wayne Cole

SYDNEY, Sept. 4 (Reuters) - The Australian dollar broke to four-month highs on the greenback on Friday as markets pared the chance of a near-term rise in U.S. interest rates, while the New Zealand dollar struggled with a dovish shift in the policy outlook at home.

In contrast, data on economic growth and inflation have led investors to narrow the odds on the Reserve Bank of Australia hiking rates again when it meets later this month.

Markets now imply a 66% chance of a quarter-point rise to 4.60% this month, up from just 10% a couple of weeks ago. They also imply a 50% risk of a further move to 4.85%. 0#AUDIRPR