The Australian dollar strengthened past $0.655, reaching its highest level in over two weeks and extending gains from the previous week, as strong economic indicators fueled expectations of potential interest rate hikes by the Reserve Bank of Australia (RBA).

Recent data showed that the manufacturing PMI climbed to a three-month peak in November, signaling expansion in the sector, while the ANZ-Indeed Job Ads survey indicated a slower decline in job postings, reflecting softer but sustained labor demand.

Additionally, the first full monthly price release highlighted that price pressures remain elevated. The headline inflation rate rose to a seven-month high, while the trimmed mean inflation, the RBA’s preferred gauge of underlying price pressures, surpassed expectations.

Investors and analysts are now looking ahead to the third-quarter GDP release this week. Forecasts suggest that strong economic growth could further intensify speculation of a rate hike in early 2026, reinforcing the Australian dollar’s recent upward momentum.