Australia’s fourth-quarter inflation rate crossed the wires at 3.5% this morning, beating the 3.2% consensus forecast, according to a Bloomberg survey. The hotter-than-expected inflation print will likely serve as a tailwind for the Australian Dollar. That is because the Reserve Bank of Australia (RBA) may react in a hawkish manner given that the current rate is above the central bank’s 2 to 3% target range. AUD/USD was slightly higher on the day following the CPI print. The market has increased bets that the RBA will tighten in recent months, pulling the chance for a rate hike into this year. Today’s CPI numbers may ... (full story)