AUD/USD Surges Above 0.71 on RBA Rate Hike Expectations

The Australian dollar (AUD) has rebounded above 0.71 against the US dollar (USD) as investors react to signals from the Reserve Bank of Australia (RBA) that interest rates may continue to rise.

RBA Governor Michele Bullock recently warned of elevated inflation risks, pointing to higher energy costs and domestic capacity pressures, suggesting that interest rates may remain higher for longer.

The AUD/USD pair has recovered from a four-week low, with markets pricing in additional RBA rate hikes. A softer US dollar and lower Treasury yields have also supported the Australian dollar's recovery.