Aussie Dollar Slumps on Soft Q2 CPI Figures

The Australian dollar has weakened in Asian trading following Q2 CPI figures that were softer than expected.

Trimmed mean inflation was still high at 0.8% quarterly, but annual rates slowed to 3.6%, down from the previous quarter's 4.0%. The largest contributors to inflation were housing, food, and recreation and culture, which rose by 6.8%, 3.3%, and 3.3% respectively.

This has led some traders to reassess their bets on Reserve Bank of Australia interest rate hikes, with governor Michele Bullock warning that higher rates are slowing the economy down as intended.