Australian dollar hits 12‑week high due to inflation data

The Australian dollar rose in the Asian market on Wednesday against a basket of global currencies, widening its gains for the second consecutive day against its U.S. counterpart, recording a 12‑week high, following the release of inflation data that exceeded expectations in Australia.

Price snapshot • Australian dollar exchange rate today: The Australian dollar rose against its U.S. counterpart by 0.35% to 0.7187, the highest since June 2, from the day's opening rate of 0.7163, and recorded a low of 0.7157.

Inflation in Australia: Data released on Wednesday by the Australian Bureau of Statistics showed that the overall Consumer Price Index rose 3.5% year‑on‑year in July, above market expectations of 3.3%, and the index had risen 3.8% in June.

These data indicate that persistent inflation remains outside the Reserve Bank of Australia's target range of 2‑3% over the medium term, which increases the likelihood of continued monetary policy tightening and interest rate hikes.

Expectations for the Australian dollar's performance: Here at "FX News Tody", we anticipate the Australian dollar to continue moving positively against its U.S. counterpart, due to increased likelihood of further Australian interest rate hikes this year.

Released by the Australian National Statistics Office on Wednesday morning, the annual Consumer Price Index recorded a 3.5% rise in July, above market expectations of 3.3%, lower than the previous reading of 3.8%.