The Australian dollar strengthened around $0.650 on Wednesday, hitting a one-week high, after a stronger-than-expected inflation print reinforced bets of a hawkish RBA policy outlook. The first full monthly price release showed price pressures remained elevated, with headline inflation accelerating to 3.8% in October, its fastest in seven months and above estimates. Crucially, trimmed mean inflation, the RBA’s preferred gauge of underlying price pressures, rose to 3.3%, also exceeding forecasts. A surprisingly strong quarterly inflation reading last month had already prompted the RBA to hold rates steady. Last week, Assistant Governor Hunter noted the labor market was slightly beyond sustainable levels, with unemployment declining and wage growth remaining elevated, underscoring persistent tightness and supporting the central bank’s cautious stance. Market pricing now suggests little chance of easing until May next year, while some analysts believe the easing cycle has already ended.