The Australian dollar marked its biggest losses in about three months against the world's reserve currency on Wednesday after the South Pacific nation released official data indicating core inflation data was weaker than economists and analysts expected, according to Bloomberg.
The Aussie slumped at least 0.5 percent against all 16 of its major rivals after concerns mounted about the Reserve Bank of Australia boosting interest rates. China, the top commerce partner of Australia, released data indicating manufacturing contracted.
"The weak CPI number does make it easy for the Reserve Bank to change its tone again and that certainly seems to be what markets are thinking this morning," head of currency research Simon Derrick with Bank of New York Mellon in London told Reuters during the midweek trading session.
The Aussie fell roughly 1 percent against the U.S. dollar, which was its largest daily losses since late January.
The Aussie had been on the rise since January against its rival monetary units as the RBA was adjusting the tone of its rhetoric, according to Reuters.
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