Australian Dollar Falls Amid RBA Rate Cut Speculation

(RTTNews) - The Australian dollar weakened against other major currencies in the Asian session on Wednesday, as a slowing Core CPI renewed hopes of a rate cut by the Reserve Bank of Australia in February.

Data from the Australian Bureau of Statistics showed that the headline monthly Consumer Price Index increasing by 2.3 percent annually in November versus a 2.1 percent increase rise in the previous two months, the highest reading since August also surpassed forecasts of 2.2 percent. The Annual Trimmed Mean, a measure of core inflation however dropped to 3.2 percent from 3.5 percent in the previous month.

Another report from ABS showed that the number of job vacancies increased for the first time since May 2022. Vacancies grew 4.2 percent in November from August. However, it was 10.3 percent lower than in November 2023.

Traders await the minutes of the Federal Open Market Committee (FOMC) due later in the day.

In the Asian trading today, the Australian dollar fell to 6-day lows of 1.6656 against the euro and 0.8918 against the Canadian dollar, from yesterday's closing quotes of 1.6593 and 0.8949, respectively. If the aussie extends its downtrend, it is likely to find support around 1.68 against the euro and 0.86 against the loonie.

Against the U.S. dollar and the yen, the aussie slipped to 2-day lows of 0.6212 and 98.16 from Tuesday's closing quotes of 0.6229 and 98.46, respectively. The aussie may test support around 0.60 against the greenback and 96.00 against the yen.

The aussie edged down to 1.1040 against the NZ dollar, from yesterday's closing value of 1.1052. On the downside, 1.08 is seen as the next support level for the aussie.

Looking ahead, Eurozone economic sentiment survey results for December and producer prices data for November are due to be released in the European session.

In the New York session, U.S. mortgage approvals data, U.S. weekly jobless claims data, U.S. EIA crude oil data and U.S. consumer credit change for November are slated for release.