Aussie rallies on inflation surprise and rate hike speculations
The Australian dollar surged higher on Wednesday after data revealed that inflation accelerated much more than expected in May. This development impacted bonds as investors priced in a greater risk of another increase in interest rates.
The monthly consumer price (CPI) report showed annual inflation rose to 4.0% in May. A key core measure also picked up to 4.4%, the highest reading in six months.
How is the Reserve Bank of Australia (RBA) responding to this? Read to find out more.
Disclaimer:
Investors should remain cautious as inflation data and central bank policies continue to drive market movements.
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