Extending yesterday's downward rally, the Australian dollar fell further versus its major counterparts in the early Asian session on Thursday. While the Aussie edged down to 2-week lows versus the US dollar and the Canadian dollar, it dropped to multi-day lows versus the yen and the euro during early Asian deals on Thursday.
Traders continued to mull over Australia's inflation report published yesterday. The Australian Bureau of Statistics reported yesterday that the inflation in Australia increased by 1.5% in the second quarter when compared to the preceding three months. The Bureau said that the Consumer Price Index was 4.5% above its level year ago. Most economists were forecasting a rise of 1.3% on quarter and 4.3% on year.
The Aussie continued yesterday's downward rally versus the buck and the loonie in early Asian trading on Thursday, slipping to 2-week lows of 0.9587 and 0.9688, respectively. Around 9:40 pm ET Wednesday, the Aussie was trading at 0.9590 versus the US dollar and 0.9692 against the loonie.
Investors mulled the Federal Reserve's Beige Book of economic conditions published on Wednesday afternoon. The Beige Book said "Reports from the 12 Federal Reserve districts suggested that the pace of economic activity slowed somewhat since the last report."
A report published yesterday showed that Canada's inflation rose to 3.1% on year in June, beating market forecasts that called for an increase of 2.9%. On a monthly basis, the inflation climbed to 0.7%. Economists were looking for a 0.5% rise.
The Aussie also edged lower to a 9-day low of 1.6366 versus the euro and a 6-day low of 103.41 versus the yen on Thursday in early Asia. The Australian dollar, which closed yesterday's deals at 1.6324 versus the euro and 103.82 versus the yen, was quoted at 1.6363 and 103.41, respectively around 9:45 pm ET Wednesday.
Market watchers now look forward for German and Euro Zone PMI data in July, German IFO Business climate in July and the euro zone current account reports in May, which will be released in the upcoming session.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.