Aussie Bounces Above $0.71 Amid Hawkish RBA Comments

The Australian dollar has made a modest recovery, rising above $0.71 as it attempts to bounce back from a four-week low.

This rebound is largely attributed to hawkish comments from Reserve Bank Governor Michele Bullock, who warned of materializing upside inflation risks and the potential for higher costs to make inflation more persistent.

The Governor's remarks align with previous statements from senior RBA officials that inflation remains elevated and needs to ease further.

The swaps market now prices at least two more rate hikes by the February meeting, with a roughly 87% chance of the first occurring on September 29, up from just one further hike priced earlier this month.