Australian inflation data for July exceeded market expectations. The stronger consumer price numbers increased the likelihood of a policy rate tightening by the Reserve Bank of Australia. Major banks ANZ and CBA adjusted their policy expectations after the data. Both ANZ and CBA are now predicting a policy rate hike in November. Westpac maintains a distinct Reserve Bank of Australia outlook.
The stronger price data and growing rate hike bets pushed the Australian dollar up relative to the US dollar. The move upward came after the unexpected inflation report.