Soft Inflation Data Dents Aussie Dollar Hike Bets

The Australian Dollar is broadly lower after data revealed that inflation in the country remains soft. This has led to a reversal of expectations for an interest rate hike by the Reserve Bank of Australia (RBA). The RBA had been expected to increase rates due to rising inflation, but with consumer prices increasing at a slower pace than anticipated, investors are now betting on a hold.

The Australian Dollar's decline is largely driven by the disappointment in the inflation data. The country's Consumer Price Index (CPI) rose 0.8% in the third quarter, which is below the expected 1.1% increase. This has led to a shift in market expectations, with some analysts now predicting that the RBA will keep interest rates unchanged at its next meeting.

The soft inflation data has also had an impact on other markets, with the Australian Dollar falling against major currencies. The AUD/USD currency pair is down 0.5% in response to the news.