AUD Surges on Hawkish RBA Hopes Amid Stronger Than Expected Inflation Data

The Australian dollar gained strength against other major currencies in Thursday's European session following the release of hotter-than-expected inflation data. The Reserve Bank of Australia (RBA) is seen as likely to hike interest rates amid this unexpected increase in consumer prices.

Australia's Consumer Price Index (CPI) report for July showed a slight easing of headline inflation from 3.8% YoY in June to 3.5% YoY, while trimmed mean inflation remained steady at 3.6% YoY.