The publication of Australian inflation data graced the Asian trading session, which saw readings recorded lower than expected.
The consumer price index (CPI), which is a measure of inflation, missed expectations to remain at 0.9%, falling 0.6% in the first quarter of 2021.
On an annual basis, the inflation rate also fell below the market forecast for an increase of 1.4%, down to 1.1%.
Investors were clearly disappointed with this lackluster reading and pushed the Aussie dollar lower by 0.45% to around 0.7730.
With the figures shown in the latest data, this means the Australian Central Bank (RBA) will not change their stance to tighten monetary policy sooner.
Meanwhile, the US dollar giant continued to trade positive against its major rivals.
In general, investors are cautious ahead of the FOMC’s monetary policy announcement scheduled for early Thursday morning.
The Federal Reserve (Fed) is widely expected to maintain monetary policy easing while they are unchanged despite speculation that the central bank will tighten policy amid the improvements exhibited in economic data.
In the Asian session, the greenback dollar traded higher around 90.97, following a rise in 10 -year U.S. treasury yields that rebounded above 1.6%.
