Forex News: Aussie Falls After Soft Australia CPI Data

Aussie Falls After Soft Australia CPI Data

(RTTNews) - The Australian dollar weakened against other major currencies in the Asian session on Wednesday, following the release of soft Australian consumer inflation figures in June.

Data from the Australian Bureau of Statistics (ABS) showed that the Australia's Consumer Price Index (CPI) grew 3.8 percent year over year (YoY) in June as opposed to a 4 percent growth recorded in May. The market had forecasted the consumer prices to rise to 4 percent in the previous month.

In June, the monthly Consumer Price Index fell by -0.1 percent, surpassing the projected 0.2 percent increase and the prior reading of a 0.7 percent decline.

On a monthly and annual basis, the June quarterly RBA Trimmed Mean CPI increased by 0.8 percent and 3.6 percent, respectively. In June, the Trimmed Mean CPI increased by 0.3 percent on month. During that time, the Trimmed Mean CPI increased 3.6 percent year over year.

The RBA's monetary policy decisions are heavily influenced by inflation data, and Governor Michele Bullock claims that "it is still too high."

After raising rates three times in 2026, the Board of the RBA met in June and chose to keep the cash rate target at 4.35%. According to the statement that accompanied it, officials recognized that disruptions to the world's oil supply are affecting inflation, which "materially" increased in the second half of 2025-that is, prior to the ongoing conflict in the Middle East.

Traders remain cautiously optimistic on hopes for an end to hostilities in the Middle East after the U.S. and Iran continue to hold off on exchanging attacks for the fourth straight day.

The markets look ahead to the interest rate decision by the U.S. Fed later in the day, though they are pricing in a hold on interest rates.

U.S. President Donald Trump acknowledged yesterday that the U.S. and Iran were involved in negotiations and expected a positive outcome.

Despite Trump's claims, Iran denied being involved in any kind of talks with the U.S. Iran admitted to being involved in discussions with Oman and Saudi Arabia separately regarding the management of the Strait of Hormuz but ruled the U.S. involvement anywhere in the picture.

Meanwhile, the U.S. and Saudi forces struck Tehran-backed targets in Iraq after Tehran fired missiles at U.S. bases, reviving concerns over energy supply disruptions.

Crude oil prices plunged amid rising optimism over a resolution to the U.S.-Iran conflict, easing supply disruption concerns. West Texas Intermediate crude for September delivery shed $3.61 or 4.37 percent at $79.00 per barrel.

In the Asian trading, the Australian dollar fell to nearly a 2-week low of 1.6324 against the euro and a 9-day low of 113.53 against the yen, from yesterday's closing quotes of 1.6326 and 114.29, respectively. If the aussie extends its downtrend, it is likely to find support around 1.66 against the euro and 111.00 against the yen.

Against the U.S., the Canada and the New Zealand dollars, the aussie slipped to more than a 2-week low of 0.6938, a 9-day low of 0.9784 and a 1-week low of 1.2003 from Tuesday's closing quotes of 0.6974, 0.9838 and 1.2064, respectively. The aussie may test support around 0.68 against the greenback, 0.97 against the loonie and 1.19 against the kiwi.

Looking ahead, U.S. MBA mortgage approvals data and U.S. EIA crude oil inventories data are slated for release in the New York session.

At 2:00 pm ET, the U.S. Federal Reserve (Fed) is also expected to make its monetary policy announcement. The Fed expect to maintain its interest rates at 3.75 percent.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2026 RTTNews.com. All Rights Reserved

Market News provided by RTTNews