Australian economic figures for July exceeded market expectations. The higher inflation figures raised the risk of an interest rate hike by the Reserve Bank of Australia. Leading financial institutions ANZ and CBA changed their rate predictions following the report. Both ANZ and CBA are now predicting a benchmark rate rise in November. Westpac continues with a separate Reserve Bank of Australia forecast.
The stronger price data and climbing policy tightening expectations boosted the Australian dollar up versus the US dollar. The currency rise followed the unanticipated economic report.