Australian price statistics for July exceeded market expectations. The stronger consumer price numbers raised the risk of an interest rate hike by the Reserve Bank of Australia. Leading financial institutions ANZ and CBA changed their rate predictions following the report. Both ANZ and CBA are now predicting a benchmark rate rise in November. Westpac holds a different Reserve Bank of Australia outlook.
The higher inflation figures and growing rate hike bets boosted the Australian dollar up relative to the US dollar. The gain in the exchange rate was triggered by the unanticipated economic report.