Australian economic figures for July came in higher than projected. The elevated price metrics heightened chances for an interest rate hike by the Reserve Bank of Australia. Top lenders ANZ and CBA revised their interest rate forecasts following the report. Both ANZ and CBA now forecast a policy rate hike in November. Westpac continues with a separate Reserve Bank of Australia outlook.
The hotter inflation summary and climbing policy tightening expectations pushed the Australian dollar up relative to the US dollar. The currency rise was triggered by the unanticipated economic report.