Australian economic figures for July exceeded market expectations. The stronger consumer price numbers heightened chances for a policy rate tightening by the Reserve Bank of Australia. Top lenders ANZ and CBA revised their interest rate forecasts after the data. Both ANZ and CBA now forecast a policy rate hike in November. Westpac continues with a separate Reserve Bank of Australia forecast.
The higher inflation figures and climbing policy tightening expectations boosted the Australian dollar up relative to the US dollar. The gain in the exchange rate was triggered by the unanticipated economic report.