The Australian dollar fell after the report showed that the consumer prices rose less than expected, decreasing the possibility of the interest rates hike by the central bank.
The consumer prices in Australia rose 0.7 percent in the third quarter from the second quarter, compared to the median forecast of 0.8 percent. The prices increased by 2.8 percent from a year ago. The expected value was 2.9 percent.
The report caused the speculation that the interest rates increases would be postponed and would be more gradual. Considering such outlook it’ll be hard for the Australian currency to rise far above parity with the US dollar.
AUD/USD traded at 0.9738 as of 04:00 GMT after closing on the previous trading session at 0.9852. EUR/AUD traded near 1.4189.
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