SYDNEY, Oct 30 Reuters Australian retail sales rose at the fastest pace in eight months in September, suggesting some resilience in consumer spending which would add to the case for an interest rate hike as soon as next week.

The Australian dollar rose 0.4 to 0.6360, while threeyear government bond yield hit a fresh 12year high of 4.388. Markets leaned further into bets that the Reserve Bank of Australia will hike by a quarterpoint in November, with a 61 probability, up from 58 before.

Data from the Australian Bureau of Statistics ABS showed on Monday that nominal retail sales rose 0.9 in September from August, better than analysts39; expectations for a 0.3 increase and an upwardly revised gain of 0.3 for August.

Sales of A35.9 billion were up 2.0 from a year earlier, picking up for the first time since August last year when the annual gains peaked at almost 20.

Ben Dorber, ABS head of retail statistics, said a diverse range of factors drove the September results.

The warmerthanusual start to spring lifted turnover at departments stores, household goods and clothing retailers, with more spending on hardware, gardening, and clothing items, said Dorber.

He added that the release of a new iPhone model and the introduction of the government rebate program in Queensland to save energy consumption also helped with spending on household goods.

Over the quarter, the resilience in consumers meant that retail volumes have avoided an outright decline, with analysts…