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Australian dollar stumbled against its American counterpart in European trading session on Wednesday with declines came after the release of Australia’s September quarter consumer price inflation (CPI) report that missed market forecasts.
The Aussie plunged noticeably more than 0.8 percent versus the U.S. dollar, sending the pair AUDUSD down to as low as $0.77100- the lowest level since mid-July. The pair weakened after the Australian Bureau of Statistics (ABS) reported that CPI figures for the third quarter (on a quarterly basis) came in at 0.6 percent, which was well below the 0.8% rise expected.
Meanwhile, the trimmed mean CPI, the more important measure for inflation in terms of the outlook for interest rates, gained only 0.35 percent on quarter, bringing the annual rate to 1.88%. Market had expected a quarterly increase of 0.5% or a year-on-year rate of 2%. Weak inflation data put doubt into the Reserve Bank of Australia (RBA)’s rate hike forecasts for next year.
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