Australian economic figures for July came in higher than projected. The elevated price metrics heightened chances for a policy rate tightening by the Reserve Bank of Australia. Leading financial institutions ANZ and CBA changed their rate predictions after the data. Both ANZ and CBA currently project a policy rate hike in November. Westpac maintains a distinct Reserve Bank of Australia policy perspective.
The higher inflation figures and climbing policy tightening expectations lifted the Australian dollar up versus the US dollar. The currency rise came after the unanticipated economic report.