The AUD/USD pair is riding an upward wave.
The Australian dollar continues its ascent against the US dollar. The current AUD/USD exchange rate is 0.6400.
On Wednesday morning, the Aussie surged to a two-week high following the release of Australian inflation data that exceeded expectations.
For instance, the Q3 CPI dropped to 5.4% from the previous 6.0%. However, it outperformed the forecasted 5.3%.
Earlier this week, RBA Chair Michele Bullock stated that the central bank would swiftly raise interest rates if inflation data indicated an uptick. Currently, the Australian interest rate stands at 4.1% per annum.
Given the magnitude of these developments, the reaction of the Australian dollar is entirely reasonable.