The Australian dollar rose toward $0.72, reaching a fresh three-month high as expectations for another Reserve Bank of Australia rate increase outweighed stronger U.S. retail sales and industrial production. Australia’s consumer price index accelerated to 3.5% year-on-year in July from 3.3% in June, above the 3.4% forecast, while trimmed-mean inflation, the RBA’s preferred underlying measure, rose to 3.8% from 3.6%. National Australia Bank expects a hike to 4.6% at the September 29–30 meeting and possibly another as early as November if activity remains resilient; Commonwealth Bank and ANZ forecast a November increase, while Westpac expects rates to remain on hold. Markets price roughly a 50% chance of a September increase, up from 17% before the inflation report, and 30 basis points of cumulative additional tightening by February next year. The RBA has held its cash rate at 4.35% for a second consecutive meeting after three hikes this year, with Governor Michele Bullock stressing vigilance against inflation. Attention turns to Australian employment and inflation data, second-quarter GDP, household spending, capital expenditure and further RBA communications.