Australian dollar surges after inflation spike increases interest rate hike likelihood.

The Australian dollar surged on Wednesday after a surprising spike in inflation increased the likelihood of another interest rate hike. Australian inflation reached a six-month high of 4% in May, prompting traders to price in a 70% chance of a further rate hike by November, pushing the AUD/USD up 0.46% to $0.6679. Meanwhile, the Japanese yen remained under pressure due to the U.S. dollar.