The US dollar fell against most major rivals on Wednesday, extending losses after the release of US inflation data.

US consumer prices rose 3.4% y/y in April, down from 3.5% in March.

Core prices rose 3.6% y/y in April, down from 3.8% in March, marking the lowest rate since April 2021.

On a monthly basis, consumer prices rose 0.3% in April, down from 0.4% in March.

This a huge decline from the peak of 9.1% scaled in June 2022.

Fed Chair Jerome Powell said he expects US inflation to decline in upcoming months, which was taken as a sign of impending policy easing.

However, Powell cautioned hes still not completely confident about the estimates, although he did rule out another rate cut given the recent data.

According to the Fedwatch tool, theres a 51.7% chance of a Fed rate cut in September, up from 44.9% yesterday.

On trading, the dollar index fell 0.6% as of 20:56 GMT to 104.3, with a session-high at 105.06, and a low at 104.3.

Aussie

The AUD/USD pair rose 0.9% as of 21:22 GMT to 0.6689.

Earlier Australian data showed wages rose 0.8% in March, below the 0.9% estimate.

Loonie

The Canadian dollar rose 0.3% against its US counterpart as of 21:22 GMT to 0.735.