Australian Dollar Hits Two-Month Low Amid Weaker Inflation Data

The Australian dollar continued its downward trend on Wednesday, reaching a two-month low against the US dollar. The losses were driven by weaker-than-expected inflation data and less hawkish comments from Reserve Bank of Australia Governor Michele Bullock.

The AUD/USD fell 0.35% to $0.6958, its lowest level since July 30. This marks a third consecutive session of losses against the US dollar and puts the currency on track for a steep monthly loss in September.

The Australian inflation data showed that headline consumer prices rose 4.0% year-on-year in August, below market expectations. This could indicate that prices are responding to the Reserve Bank of Australia's monetary policy normalization and tighter financial conditions.