AUD/USD falls to 6-month low on weak inflation data

The Australian dollar fell significantly during the Asian session, to witness its lowest since March 11th against the US dollar following the economic developments and data released by the Australian economy and the lack of economic data on Wednesday by the US economy, the largest economy in the world.

As of 02:02 GMT, AUD/USD fell 0.84% to $0.7042 compared to the opening levels of $0.7102 after a high of $0.7103 and the lowest in 6 weeks at $0.7036.

We have followed the Australian economy's release of inflation data as the Consumer Price Index (CPI) showed stability at zero, versus 0.5% growth in the fourth quarter of last year, as opposed to expectations of a slowdown of 0.2%. While the core reading of the consumer price index showed a growth slow to 0.3% from the previous quarter's reading and expectations at 0.4%.

In the same context, the annual reading of the consumer price index showed that growth slowed to 1.3% from 1.8% in the fourth quarter, worse than analysts' forecasts of a slowdown of 1.5%. The core annual reading of the consumer price index showed growth slowing to 1.6% versus 1.8% in the fourth quarter, also worse than analysts' forecasts of a 1.7% slowdown in growth, boosting the chances of further cuts in Australian interest rates.