Aussie at the forefront of worst performing currencies after inflation data

Australian dollar fell in European trade against a basket of major rivals, marking the first loss in three days against US dollar and becoming the worst performing major currency after data showed Australian inflation slowed down for the second straight month.

Such data bolstered the Reserve Bank of Australia's belief that inflation has peaked in the last quarter of 2022, with inflationary pressures easing on policymakers. 

AUD/USD fell over 0.6% today to 0.661, with a session-high at 0.6713, after rising 0.9% yesterday, the second profit in a row as risk appetite improved in the markets. 

Worst Performing Currencies

The aussie was at the top of the major worst performing currencies, plumbing 13-month lows against the British pound, and 19-month lows against euro.

Inflation Data

Recent data showed consumer prices rose 6.8% in Australia last month, missing estimates of 7.2%, and slowing down from 7.4% in January. 

Such data releases pressure from the RBA and hurts chances of additional rate hikes. 

However the important issue now is the timeline of inflation's return to normality, which might impact interest rate outlook more heavily in the future.