Australian inflation data for July exceeded market expectations. The stronger consumer price numbers heightened chances for a borrowing cost increase by the Reserve Bank of Australia. Top lenders ANZ and CBA changed their rate predictions following the report. Both ANZ and CBA currently project a policy rate hike in November. Westpac holds a different Reserve Bank of Australia outlook.
The stronger price data and growing rate hike bets lifted the Australian dollar up relative to the US dollar. The gain in the exchange rate was triggered by the unanticipated economic report.