AUDUSD Drops Below Key Support as Australia's Inflation Data Misses Forecasts

AUDUSD fell to below 0.6965 after Australia's Consumer Price Index (CPI) data came in softer than expected, putting renewed pressure on the Australian dollar.

The headline CPI rose 4.0% year-over-year, below the 4.1% forecast, with inflation accelerating from a previous reading of 3.5%. Monthly CPI increased by just 0.4%, missing expectations of 0.5% and slowing significantly from a previous increase of 1.0%

The weaker inflation data has shifted attention towards the Reserve Bank of Australia's (RBA) future policy decisions, with traders monitoring whether buyers can stabilise the pair above 0.6960.