AUD Strengthens Amid Hawkish RBA Comments and Market Expectations
The Australian Dollar (AUD) strengthened on Friday, trading around 0.7120 during Asian hours, after hawkish comments from Reserve Bank of Australia (RBA) Governor Michele Bullock.
Bullock stated that the central bank's inflation concerns have materialized and may force another interest rate increase, reinforcing market expectations for a fourth rate hike this year at the RBA's late-September meeting.
Deputy Governor Andrew Hauser reaffirmed the Board's commitment to its 2-3% inflation target, while analysts at UBS now project two additional hikes, bringing the terminal rate to 4.85%.