AUD Surges Amid Hawkish RBA Comments

The Australian Dollar (AUD) regained momentum on Friday, rising 0.31% after domestic monetary policy expectations remained supportive. The AUD/USD exchange rate traded around 0.7080 at the time of writing.

RBA Assistant Governor Chris Kent's comments kept the prospect of further interest-rate increases on the table. He stated that recent interest-rate increases are producing their intended effects, but warned that further tightening remains possible if new inflationary risks emerge.

The US Dollar (USD) struggled to regain momentum after softer United States inflation figures reduced expectations of an interest rate increase by the Federal Reserve (Fed) in September. The CME FedWatch Tool priced a 34.8% chance of a rate increase at the September meeting, down from around 60% two weeks earlier.