Australian economic figures for July came in higher than projected. The higher inflation figures raised the risk of a borrowing cost increase by the Reserve Bank of Australia. Leading financial institutions ANZ and CBA adjusted their policy expectations following the report. Both ANZ and CBA are now predicting a benchmark rate rise in November. Westpac maintains a distinct Reserve Bank of Australia forecast.
The stronger price data and growing rate hike bets lifted the Australian dollar up versus the US dollar. The gain in the exchange rate was triggered by the unanticipated economic report.