Australian economic figures for July topped market forecasts. The higher inflation figures heightened chances for an interest rate hike by the Reserve Bank of Australia. Major banks ANZ and CBA adjusted their policy expectations following the report. Both ANZ and CBA now forecast an interest rate increase in November. Westpac holds a different Reserve Bank of Australia forecast.
The stronger price data and growing rate hike bets pushed the Australian dollar up versus the US dollar. The gain in the exchange rate followed the unanticipated economic report.