Australian price statistics for July topped market forecasts. The elevated price metrics increased the likelihood of an interest rate hike by the Reserve Bank of Australia. Major banks ANZ and CBA changed their rate predictions after the data. Both ANZ and CBA currently project 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 boosted the Australian dollar up versus the US dollar. The move upward followed the unanticipated economic report.