The Australian dollar tumbled on the weak inflation data

The Australian dollar immediately fell after inflation data missed expectations.

Quarterly inflation growth was 0.6% which left the annual rate at 1.8%, missing forecasts of 0.8% and 2.0% respectively.

After falling below US78 cents overnight, the Aussie immediately slumped to below 0.7750 US cents from 0.7780 US cents.

Government bonds yields also fell, with the yield on the benchmark 10-year falling to 2.784%, in from 2.834% before the release.

A short time ago, the AUD’s slide was continuing as it fell through key support at 0.7730.

Here’s the latest five-minute chart:

AxiTrader’s Greg McKenna said on Twitter that if the AUD falls below support at 0.7730, it could break materially lower towards 0.7650.

This daily chart from investing.com shows the AUD is now trading at a level that’s acted as both resistance and support over the last 12 months:

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