Slower-than-forecast Inflation Data Drags Australian Dollar Down
Australian dollar fell to the lowest level versus its American counterpart since last Friday after the Reserve Bank of Australia reported a weaker-than-expected data on change in the price of goods and services purchased by consumers in last quarter.
In a report published on Wednesday, the RBA said that Australian trimmed mean CPI advanced to a seasonally adjusted 0.4%, from 0.4% in the preceding quarter. The figure fell short of consensus estimate calling for an increase of 0.5%.
Official data from Australian Bureau of Statistics also reflected slower-than-forecast inflation which was partly due to the weakness of China’s currency against the local dollar. Decreasing cost of imports like clothing only pushed quarterly headline CPI 0.5% higher compared a forecast of 0.7% by economists.
Annual CPI rose 1.5%, remaining below the bottom of the central bank’s target range for a ninth straight quarter.
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