Responding to a sharp jump in Australia’s inflation to a new 21-year high in the 2021/22 financial year, the country’s Treasurer Jim Chalmers said that he recognizes the cost-of-living burden on households.

Chalmers is due to deliver a "confronting" economic statement to the nation on Thursday and has promised Australians the government is on the case to tame inflation.

Market reaction

At the time of writing, AUD/USD is attempting a bounce to near 0.6930, having dropped to 0.6913 lows after the Australian CPI data doused hopes for a 75 bps RBA rate hike in August. The spot is down 0.08% on the day.

• RBA seen hiking rates by 50 bps in August after headline inflation miss – Goldman Sachs