Australian Dollar Dips After Core Inflation Outlook and RBA Comments

The Australian Dollar weakened against the US Dollar on Tuesday, slipping approximately 0.35% to around 0.6965 during the European session. This movement followed remarks by RBA Bullock on the Australian economy and inflation expectations.

According to FX Street (TD Securities), strategists anticipate the Reserve Bank of Australia's preferred core CPI to increase by 0.9% quarter-on-quarter in Q2, up from 0.8% in Q1. This would push annual core inflation to 3.7%, slightly below the RBA's 3.8% projection.

This development is closely watched by Japanese investors as shifts in the Australian Dollar can influence regional trade and risk sentiment, particularly in FX and equities markets sensitive to commodity currencies.