AUD Falls Amid Soft Inflation Data; Yen Gains on Intervention Fears

The Australian Dollar slipped against major currencies on Wednesday after Australia's monthly Consumer Price Index (CPI) came in below expectations, rising 3.4% year-on-year in April.

The softer inflation figures reinforced market expectations for a rate cut by the Reserve Bank of Australia (RBA), with markets now pricing in a greater than 50% chance of a reduction by November.

The AUD/USD pair fell to $0.6615, its session low, before stabilizing as traders unwound carry trades that had favored the higher-yielding Australian currency.