July Australian CPI rose 3.5% year-over-year, exceeding forecasts and boosting the AUD to multi-month peaks.
Australia’s monthly consumer price index climbed 3.5% year-over-year in July, above the 3.2% consensus forecast, driven by higher-than-expected core inflation. The surprise print sent the AUD to a three-month high against major currencies, reflecting market bets on tighter monetary policy.
Analysts had anticipated a modest uptick from June’s 3.2% reading, but the sharper rise suggests persistent price pressures. The Reserve Bank of Australia has signaled caution on further rate hikes, though today’s data may shift expectations ahead of its next meeting.
The currency’s strength also reflects broader USD weakness, with markets awaiting U.S. inflation data and Nvidia’s earnings report later this week. Asian equities edged higher in early trading, while gold held near three-month highs.