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Australian Dollar Falls On Lower-than-expected Inflation Data

The Australian dollar declined against other major currencies in early Asian deals on Wednesday after the release of country's consumer inflation figures, which rose less-than-expected for the first quarter.

The latest figures from the Australian Bureau of Statistics showed that the consumer price index rose 0.4 percent quarter-on-quarter in the first three months of the year following a 0.2 percent increase in the fourth quarter of 2012. This, however, was weaker than the expected 0.7 percent increase.

Year-on-year, the CPI increased 2.5 percent, faster than a 2.2 percent gain in the previous quarter. Economists had forecast a 2.8 percent rise.

The aussie that climbed to a 2-day high of 1.0275 against the greenback prior to the data declined to 1.0237 at 9:30 pm ET. On the downside, the aussie may break 1.015 level.

After touching a 5-day high of 1.2651 against the euro at 9:25 pm ET, the aussie fell immediately after the release of CPI. The aussie is worth 1.2697 against the euro, compared to Tuesday's close of 1.2657.

The aussie is trading at 1.0518 against the loonie, reversing from 2-day high of 1.0546 hit at 9:25 pm ET. The aussie is likely to face support around 1.045 level.

The aussie that recovered from early Asian session's low of 1.2136 against the NZ dollar was unable to hold gains and fell back. The aussie-kiwi pair is now trading at 1.2158, down from yesterday's close of 1.2179.

The aussie retreated from its early 2-day high of 102.38 against the yen and is presently trading at 101.72. At Tuesday's close, the pair traded at 102.07.

In the European session, Swiss UBS consumption indicator for March, German Ifo business climate index for April and U.K. mortgage approvals for March are due.

At 8:30 am ET, U.S. durable goods orders data for March is slated for release.

by RTTNews Staff Writer

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