The Aussie fell against the US Dollar in a wake of the quarterly report on Australia’s consumer price data. The AUD/USD exchange rate slipped 0.34% or 27 base points to the 0.8073 mark.
Australian consumer inflation remained subdued in the December quarter, as the core CPI annual growth was below the Bank’s target for the second year in a row, fuelling investors’ expectations for a rate hike anytime soon. The Australian Bureau of Statistics reported that the country’s CPI grew 0.6% in the Q4, while annual growth pace was registered at 1.9%. Higher prices of petrol, tobacco and fruit contributed most to expansion, while the main headwind was pay growth, which weakened to historical lows even with a strong employment.
