AUD Takes Hit After August CPI Inflation Rate Reaches 4.0%

The Australian Dollar (AUD) took a hit following the release of August's Consumer Price Index (CPI) data. The AUD/USD pair dropped by 0.25% to trade at 0.6970, with the AUD weakening against several major currencies.

The CPI inflation rate rose to 4.0% year-over-year in August, as expected. While this may seem like a significant increase, it's worth noting that economists focus on core inflation, which excludes volatile elements such as food and fuel. Core inflation is the target for central banks, with most aiming to keep it around 2%.

The heat map provided by the source shows the percentage changes of major currencies against each other. It appears that the AUD was the weakest against the Japanese Yen, with a drop of 0.64%.