Aussie Surges on RBA Hawkish Comments

The Australian dollar rebounded on Friday after Reserve Bank of Australia Governor Michele Bullock emphasized that inflation risks were materializing and the board was considering whether policy was tight enough.

Andrew Boak, an economist at Goldman Sachs, stated that Governor Bullock 'leaned clearly hawkish.'

Boak expects a 25 bps hike to 4.60% later this month, 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. It was still down 0.6% for the week and faced resistance around $0.7140 and $0.7187.