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Australian dollar drops to 3-month low as market anticipates rate cuts

The Australian dollar fell to a three-month low following a softer reading on core inflation. This change in data dampened expectations for further rate hikes and caused a surge in bond futures. The headline consumer price index in Australia rose in the second quarter, matching market forecasts. However, the core inflation reading, which is closely monitored by the Reserve Bank of Australia (RBA), slowed to a two-year low. This decline in core inflation indicates easing price pressures, influencing market sentiments significantly. Read more to find out how will Australian dollar trend.

how will Australian dollar trend

Disclaimer:

The Australian dollar’s recent movements reflect a broader shift in market expectations driven by softer inflation data and changing rate hike probabilities. Traders should be wary of the potential for sudden market shifts triggered by other political and economic developments, where proper risk management is vital.

Publication date:

2024-08-04 14:17:38 (GMT)

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