The Australian dollar fell in Asian trade on Wednesday against a basket of major rivals on track for the second loss in a row against its US counterpart, and becoming the worst performing G8 currency following weak inflation data.

Prices have settled at two-year lows, which reduced pressure on the Reserve Bank of Australia, and bolstered the case for starting interest rate cuts in the second half of the year.

AUD/USD

AUD/USD fell 0.35% today to 0.6511, with a session-high at 0.6539, after losing 0.1% on Tuesday, the third loss in four days.

Worst Performing Major Currency

The Aussie is the worst performing G8 currency today, with a 0.35% drop against the US dollar, and a 0.3% drop against both the euro and the pound, with a 0.25% drop against the Swiss franc, and a 0.3% decline against the yen.

The Aussie lost 0.25% against its Canadian counterpart, and 0.1% against the New Zealand dollar.

Inflation Data

Australian consumer prices rose 3.4% in February, below estimates of 3.5%. Its the lowest reading since November 2021.

Prices have held at this level for three consecutive months, showing stability and approaching the 1-3% target set by the RBA.

Australian Rates

The Reserve Bank of Australia is now more likely to cut interest rates in the second half of the year, with strong odds of such a cut in September.