The Australian dollar is rapidly declining against the US dollar on Wednesday. The current AUDUSD quote is 0.6643.
The Aussie is aiming at its three-week lows today as investors receive confirmation of the Reserve Bank of Australia's intention to pause its tight monetary policy cycle.
The Australian inflation statistics for May prove this development. The CPI slowed down to 5.6% in May from April's 6.8%. With the figure falling below the projected 6.1%, it is the lowest CPI value in the past 13 months.
Earlier, the RBA took the capital markets and economists by surprise when it unexpectedly raised the interest rate, bringing it to 4.1% per annum. This is an unprecedented value, capable of practically halting consumer activity in the country’s economy. And now, with inflation slowing down, the RBA has no need to further increase the interest rate. The Australian regulator is flexible in making monetary decisions, which means it can bring its tight cycle to an end at any moment.