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But unlike all other G10 central banks - the Bank of Japan being the obvious exception - the RBA is not expected to ease policy in 2024.

It has risen 5% in a month, broadly in line with other G10 currencies' gains against the greenback as traders have moved to price in the end of the U.S. tightening cycle and up to 100 basis points of Fed rate cuts in the second half of next year.

"Insofar as CPI inflation rates across much of the G10 are still above central bank targets, there is a strong incentive for policymakers to support the 'higher for longer' theme since higher market rates will help in the battle against inflation," said Jane Foley, senior FX strategist at Rabobank.

They also expect it to slip against the euro and other G10 currencies over the next 12 months, a position analysts have held all year but have been proven wrong each time.

"Money markets are more than fully priced for another RBA hike by Q1, eye-catching in the G10. So the Aussie has a degree of support from RBA expectations that it has rarely had since the pandemic," said Westpac analyst Sean Callow.