Australian Dollar Nears Lowest Level
The Australian dollar held steady around US$0.691 on Wednesday (June 24th). This position remains close to its lowest level in eleven weeks, after mixed Australian inflation data proved insufficient to alter market expectations regarding the direction of interest rates.
On a monthly basis, Australian consumer prices fell 0.7% in May. This decline slowed annual inflation to 4.0% from 4.2%, marking the lowest rate in three months. However, core inflation, measured by the trimmed mean, rose 0.4% monthly, pushing annual core inflation to 3.6%.
This situation leaves the market divided over the Reserve Bank of Australia's future course of action. After raising interest rates three times this year, the Australian central bank held rates unchanged this month but left open the possibility of further increases if inflation remains above target. In addition to pressure from inflation data, the Australian dollar also weakened 1.2% in the previous session due to a global stock sell-off triggered by a weakening technology sector. (asd)
Source: Newmaker.id
