Aussie Surges as RBA Signals Possible Rate Hike

The Australian dollar saw a boost on Friday after Reserve Bank of Australia Governor Michele Bullock emphasized that upside risks to inflation are materializing and the board is considering whether policy is tight enough to cope.

Bullock's hawkish comments, as described by Andrew Boak at Goldman Sachs, nudged up the chance of a September hike to 95%, with a further move to 4.85% almost fully priced by February.

The Aussie edged up 0.2% to $0.7126, having bounced almost 0.4% overnight away from support at $0.7075.

The kiwi dollar, on the other hand, eased another 0.2% to $0.5717, bringing losses for the week to 1.6%, with support lying at a 10-week trough of $0.5705 and resistance at $0.5762.