The Australian Dollar weakened significantly against the Greenback on the disappointing quarterly CPI report. The AUD/USD currency pair dropped 0.55% or 43 base points to the 0.7738 mark to continue slipping below the aforementioned level.
The Australian Bureau of Statistics revealed that the country’s consumer inflation grew at a weaker pace of 0.6% in the Q3, missing expectations for a 0.8% expansion. The modest increase was fuelled by higher travel, tobacco and utility prices, offsetting reduced costs of telecommunication, fuel and vegetables. The results hurt the possibility of the Reserve Bank of Australia’s interest rate hike in the near-term, as the yearly inflation growth remained under the 2.0% target.
