AUD Surges on Hawkish RBA Comments Amid Soft US Inflation

The Australian Dollar (AUD) has rebounded against the US Dollar (USD), gaining 0.31% on the day to trade around 0.7080, after falling as low as 0.7044 on Thursday.

This recovery is largely due to hawkish comments from Reserve Bank of Australia (RBA) Assistant Governor Chris Kent, who stated that recent interest-rate increases are producing their intended effects but warned that further tightening remains possible if new inflationary risks emerge.

The RBA left interest rates unchanged at its latest monetary policy meeting, with Governor Michele Bullock indicating that policymakers preferred to wait for additional information before acting again, while stressing that another rate increase remains under consideration.

This stance keeps expectations of further monetary tightening alive and provides support to the Australian Dollar.