The Australian dollar fell against major currencies after the Melbourne Institute inflation gauge added to bets the Reserve Bank of Australia will pause at its policy meeting Tuesday. The yen weakened.
AUD/USD declined as much as 0.4% to 0.6637 as the MI monthly inflation gauge slowed to 0.1% month-on-month in June from 0.9% in May. While economists are almost evenly split on whether the RBA will hike its cash rate target on Tuesday, traders pared their view to a roughly 20% chance of an increase from a coin toss last week.
The Bloomberg Dollar Spot Index was little changed after a 0.2% gain in the second quarter.
AUD/USD fell 0.2% to 0.6649.
USD/JPY advanced 0.2% to 144.65. It had risen to a seven-month high of 145.07 on Friday, that was near the level authorities intervened to prop up the currency last year for the first time since 1998.
Source: Bloomberg
