The Australian Dollar weakens after inflation data misses expectations, reversing two days of gains against the USD.
The Australian Dollar retreated against the USD, trading near 0.6930 in Asian hours after the TD-MI Inflation Gauge recorded a 0.4% month-over-month decline. The figure fell short of the anticipated 0.3% drop, signaling softer price pressures.
Prior to the release, AUD/USD had climbed for two consecutive sessions, recovering from recent lows. The gauge, a key indicator of consumer price trends, has shown volatility in recent months amid shifting monetary policy expectations.
Markets are assessing the data’s implications for the Reserve Bank of Australia’s next policy move, with inflation trends remaining a critical focus.