AUD/USD Plummets on Softer Australian Inflation Data

AUD/USD plummeted below 0.6950 after Australia's June inflation figures fell short of market expectations, reaching its weakest level in about two weeks.

The country's Consumer Price Index (CPI) slowed to 3.8% year-over-year in June from 4.0% in May, while prices declined 0.1% month-over-month.

Quarterly trimmed mean inflation rose 0.8%, but still came in below market expectations and the Reserve Bank of Australia's (RBA) previous forecast.

The reduced expectation of an August RBA rate increase decreased to around 4% from 21%, while the estimated chance of another increase before year-end fell to approximately 50%.