AUD Soars as RBA Hike Bets Rise Amid Hotter-Than-Expected Inflation

The Australian Dollar (AUD) has remained strong against the US Dollar (USD), trading at around 0.7180 during the European session on Thursday.

This is due to rising expectations of a rate hike by the Reserve Bank of Australia (RBA) following the release of hotter-than-expected inflation data for July.

The Australian Consumer Price Index (CPI) report showed that inflation eased from 3.8% year-over-year in June to 3.5% year-over-year in July, while trimmed mean inflation remained steady at 3.6% year-over-year.

Strategists at OCBC Bank note that both measures came in above market expectations and suggest that the RBA is likely to maintain its hawkish stance.