Australian price statistics for July exceeded market expectations. The elevated price metrics raised the risk of an interest rate hike by the Reserve Bank of Australia. Leading financial institutions ANZ and CBA changed their rate predictions after the data. Both ANZ and CBA now forecast a policy rate hike in November. Westpac holds a different Reserve Bank of Australia outlook.
The higher inflation figures and rising rate increase speculation pushed the Australian dollar up relative to the US dollar. The gain in the exchange rate came after the unexpected inflation report.