Australian price statistics for July topped market forecasts. The stronger consumer price numbers raised the risk of 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 are now predicting a policy rate hike in November. Westpac continues with a separate Reserve Bank of Australia policy perspective.
The hotter inflation summary and climbing policy tightening expectations lifted the Australian dollar up relative to the US dollar. The gain in the exchange rate followed the surprising price data release.