AUDUSD pops higher after hotter than expected CPI data

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AUDUSD has jumped higher after the hotter than expected CPI numbers out of Australia this morning.

The odds of a hold for the August meeting has fallen to 70% from the prior of 89%, while the odds of a hike for the September meeting has climbed to 35% from the prior of 12%(ish).

Will be interesting to see whether this sparks a hike from the bank. Even though they mentioned they discussed the possibility of a hike, the bank also mentioned that economic momentum was weak with growth slower and unemployment higher. Another hike would arguably exacerbate both of those two things, so the bank is in a tough spot right now.