Annual inflation in Australia slowed to 4.2% in April, below the 4.4% consensus, weighing on the Australian Dollar.
AUD/USD retreated to around 0.7160 in Asian trading Wednesday after Australia’s April Consumer Price Index rose 4.2% year-over-year, missing the 4.4% market forecast. The print marked a decline from March’s 4.6% annual increase.
The monthly CPI rose 0.4%, down from 1.1% in the prior period. The Reserve Bank of Australia’s Trimmed Mean CPI increased 0.3% month-over-month and 3.4% annually, aligning with broader disinflation trends.
The US Dollar’s modest decline on easing safe-haven demand provided limited support for the pair, as geopolitical tensions in the Middle East showed signs of de-escalation.