The Australian dollar rose in Asian trade on Wednesday against a basket of major rivals, resuming gains following hot inflation data.

Such data heaped pressure on the RBAs policymakers, and hurt the odds of Australian rate cuts this year.

The Price

The AUD/USD rose 0.3% today to 0.6666, with a session-low at 0.6639.

The pair lost 0.1% on Tuesday, the first loss in three days following strong US data.

Such data, alongside bullish remarks from Fed officials, reduced the odds of US interest rate cuts in the summer.

Australian Inflation

Earlier Australian data showed consumer prices rose 3.6% in April, the fastest pace in five months, above expectations of 3.4%.

Its a disappointing result for the Reserve Bank of Australia, and will likely force it to abstain from rate cuts this year.

Australian Rates

The markets are now almost ruling out an Australian rate cut in the second half of the year.

The Westpac Bank recently delayed the expected timing of an RBA rate cut from September to November at the earliest, and even that remains in doubt.