Whilst AUD/USD remains as strong as twelve men, interest rate hike talk may be a little overdone. The market is now building in a 64% chance of a rate hike next week from less than a 10% chance a week ago. It seems the market is forgetting that CPI is only released quarterly and is not due out until the end of October. It is hardly likely that the good folks at the RBA would want to preempt a strong reading. It makes infinite more sense to wait until November before deciding if a hike is needed. There is of course a problem waiting until November – the meeting falls on Melbourne Cup day – who wants to talk about monetary policy when there are more important things to talk about. AUD/USD last trades at 0.9591.