The Australian dollar experienced one of its biggest one-day falls this year on Wednesday after inflation slowed unexpectedly in the first three months of 2016, fanning expectations of further monetary easing.
The Australian dollar tumbled on Wednesday after surprisingly soft local inflation data, while the dollar and yen were on the defensive after a broad retreat overnight ahead of policy decisions by both the Federal Reserve and Bank of Japan.
Traders have been shepherded towards the Australian dollar by the Chair of the US Federal Reserve, Janet Yellen. The Aussie dollar is back in demand with a break above the month's high of 0.7680 coming against the US dollar. This suggests further AUD ...
The pair significantly fell after the publication of Wednesday's data on inflation in Australia. The Consumer Price Index for this first quarter of the year grew by 1.3% while economists predicted a growth of 1.8%.