Australian Dollar Falls After Softer CPI Data Dims Rate Hike Hopes
AUD/USD dropped nearly 0.5% on Wednesday after Australian inflation figures came in below forecasts, reducing expectations for further rate hikes.
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The Australian dollar weakened nearly 0.5% against the US dollar on Wednesday morning, reacting to softer-than-expected local inflation figures.
Australia’s Q2 consumer price index (CPI) rose 3.9% from a year earlier, undershooting the 4.1% forecast. The monthly CPI indicator for June printed at 3.8%, below the 4.0% consensus and down from the prior month.
The downside surprise all but extinguished near-term expectations for further Reserve Bank of Australia rate hikes, driving the currency lower.
Source: FXStreet Forex News