The Australian dollar climbed above $0.71, rebounding from a recent four-week low as hawkish remarks from the Reserve Bank of Australia’s governor strengthened expectations of further policy tightening. Governor Michele Bullock noted that upside inflation risks were starting to materialize and cautioned that rising costs could entrench inflation, citing the conflict in the Middle East, higher energy prices, and mounting domestic cost pressures. Before her testimony, swaps markets were pricing in at least two additional rate increases by the February meeting, with roughly an 87% probability that the first hike would occur on September 29. This represents a significant shift from early September, when traders anticipated just one more increase, likely by year-end. The Australian dollar also drew support from a weaker US dollar, declining US Treasury yields, and easing oil prices, while a rebound in global equity markets further bolstered the risk-sensitive currency.