Australian inflation data for July exceeded market expectations. The stronger consumer price numbers raised the risk of an interest rate hike by the Reserve Bank of Australia. Major banks ANZ and CBA revised their interest rate forecasts after the data. Both ANZ and CBA are now predicting a benchmark rate rise in November. Westpac continues with a separate Reserve Bank of Australia forecast.
The higher inflation figures and rising rate increase speculation lifted the Australian dollar up relative to the US dollar. The move upward came after the surprising price data release.