Australian Dollar rises after RBA hawkish minutes, inflation data eyed

The Australian Dollar rose over 0.20% on Tuesday as the US Dollar edged lower, following minutes from the Reserve Bank of Australia's (RBA) last meeting indicating the board was close to raising rates. US economic data, including a decline in consumer confidence and mixed reports on building permits, added to the hawkish tone from the RBA, particularly from Boston Fed President Susan Collins, who highlighted persistent high inflation and a near-trend economy expansion.

The Australian Consumer Price Index (CPI) for July is expected to drop from 3.8% to 3.2% year-over-year, with the Trimmed Mean CPI also projected to ease. The RBA's minutes suggest a focus on tackling inflation, with the bank potentially raising rates in November, according to ANZ analysts. The US economic agenda includes several key indicators, such as the Federal Reserve's preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index, Durable Goods Orders, GDP figures, and Initial Jobless Claims.

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