The Australian dollar is lower following weaker than expected inflation data.
Headline inflation for the June quarter increased by 1.9%, against a forecast rise of 2.2%. Quarterly inflation was just 0.2%, missing expectations of 0.4%.
Underlying (or core) inflation was more stable, rising annually by 1.8% against a forecast increase of 1.75%.
The Australian dollar fell back below US79 cents immediately following the news, but a short time ago had rallied back to 0.7903, a fall of 0.4%.
Here’s the chart:
In addition to the release of inflation data, currency markets are awaiting a speech from RBA governor Philip Lowe scheduled for 1:05pm AEST.