The Aussie Dollar Is Getting Smoked

The Aussie is getting smashed on the inflation data that came in short of expectations at 0.6% for the quarter, and 2.9% year-on-year.

The market expected readings of 0.8% and 3.2%.

The Aussie fell almost half a cent against the US dollar immediately on the release and a short time ago was trading at US93.05c.

Here’s the chart, via investing.com. It continued falling through an on-target reading of 48.3 in the HSBC China flash PMI, a slight rise from the previous month.

The fall will please the Reserve Bank of Australia, which in February took a more neutral outlook on interest rates. The CPI data showed prices are not rising excessively quickly in the low-interest rate environment, and so eases the pressure for a return to rate increases.

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