Australian Dollar Falls 0.8% to $0.6482; 3-Year Yield Drops to 3.81% After Lower CPI Data

The Australian dollar has experienced its sharpest decline against the New Zealand dollar in two months, falling 0.8% to $0.6482 following the release of lower-than-expected core Consumer Price Index (CPI) data. The Australian dollar dropped nearly 0.9% to $0.6481, and its value against the Japanese yen also decreased, reaching a three-month low at 98.94 yen. Additionally, the Australian 3-year bond yield fell by 18 basis points to 3.81%, indicating a steepening yield curve. Analysts suggest that the softer CPI data may lead to a potential interest rate cut by the Reserve Bank of Australia later this year.