Australian inflation data for July topped market forecasts. The higher inflation figures heightened chances for a policy rate tightening by the Reserve Bank of Australia. Leading financial institutions ANZ and CBA changed their rate predictions after the data. Both ANZ and CBA are now predicting a benchmark rate rise in November. Westpac maintains a distinct Reserve Bank of Australia forecast.
The higher inflation figures and growing rate hike bets lifted the Australian dollar up versus the US dollar. The move upward followed the unanticipated economic report.