Australian Dollar Slides as Inflation Slows to 4.2%
Updated
Updated · Barchart · May 27
Australian Dollar Slides as Inflation Slows to 4.2%
13 articles · Updated · Barchart · May 27
Australia’s dollar fell sharply across major pairs after inflation cooled to 4.2% from 4.6%, triggering a broad reversal lower in the Aussie.
The softer reading reinforced expectations that the Reserve Bank of Australia can stay on hold, especially after Australia’s unemployment rate had already risen.
That policy repricing hit crosses as well: EUR/AUD and GBP/AUD were seen with room to extend gains, while AUD/NZD turned lower after the Reserve Bank of New Zealand’s hawkish hold.
The move stood out in a mixed dollar session, with the US currency weaker against the euro but firmer versus sterling, yen and the Canadian dollar.
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