Aussie Falls As Australia CPI Rises Less-than-expected

The Australian dollar weakened against the other major currencies in the Asian session on Wednesday, after data showed that the nation's consumer price rose less than expected in the first quarter of 2017.

Data from the Australian Bureau of Statistics showed that the consumer prices in Australia gained 0.5 percent on quarter in the first quarter of 2017. That was unchanged from the previous three months, although it was shy of forecasts for 0.6 percent.

On a yearly basis, inflation advanced 2.1 percent, beneath expectations for 2.2 percent but up from 1.5 percent in the three months prior.

The Reserve Bank of Australia's trimmed mean was up 0.5 percent on quarter and 1.9 percent on year, in line with expectations after adding 0.4 percent on quarter and 1.6 percent in Q4.

The RBA's weighted median was up 0.4 percent on quarter and 1.7 percent on year, slightly beneath forecasts for 0.5 percent on quarter and 1.8 percent on year. In Q4, the mean was up 0.4 percent on quarter and 1.5 percent on year.

In other economic news, data from the ANZ bank and Roy Morgan Research showed that the consumer confidence index of Australia fell by 1.24 percent to 111.2 from 112.6 in the previous week. Moreover, the index remained below its long run average.

Tuesday, the Australian dollar showed mixed trading against its major rivals. While the aussie fell against the U.S. dollar, the yen and the euro, it rose against the Canadian and the New Zealand dollars.

In the Asian trading, the Australian dollar fell to nearly a 4-month low of 1.4571 against the euro, from yesterday's closing value of 1.4501. The aussie may test support near the 1.47 region.

Against the U.S. and the Canadian dollars, the aussie dropped to a 6-day low of 0.7506 and a 2-day low of 1.0189 from yesterday's closing quotes of 0.7534 and 1.0226, respectively. If the aussie extends its downtrend, it is likely to find support around 0.73 against the greenback and1.00 against the loonie.

Against the yen and the NZ dollar, the aussie edged down to 83.49 and 1.0821 from an early 3-week high of 84.02 and nearly a 3-week high of 1.0863, respectively. On the downside, 81.00 against the yen and 1.06 against the kiwi are seen as the next support level for the aussie.

Looking ahead, Canada retail sales data for February and U.S. crude oil inventories data are due to be released in the New York session.