From Westpac Australasian Daily.
Market themes & issues: DP data sends AUD soaring. The main focus today was the Australian Q1 GDP data. Market forecasts had been nudged higher as the partial data was generally stronger than expected, so the AUD was well supported heading into the number. In the event the market was not disappointed with the result coming in much stronger than expected. This sent the AUD through 0.8400 in quick order and from there it has been a steady grind higher towards the 0.8440 level, which we currently sit just below. This is the highest level for AUD/USD since 1989. Market pricing now puts the probability of a rate hike in August at 55% and over 100% by November.
(Thanks to Mark Crosby for the alert. )