• The Australian Dollar inches higher as higher consumer inflation dampens the RBA’s possible rate cuts.
• Australia’s monthly CPI jumped by 4.0% YoY against the expected growth of 3.8% in May.
• The US Dollar remains calm as investors turn cautious ahead of key US economic data releases later this week.

The Australian Dollar (AUD) recovers losses after releasing May's higher-than-expected Monthly Consumer Price Index (CPI). The persistently high inflation is a roadblock to the Reserve Bank of Australia's (RBA) possible rate cuts, potentially supporting the Aussie Dollar and underpinning the AUD/USD pair.

Reserve Bank of Australia (RBA) Assistant Governor Christopher Kent stated on Wednesday that recent data emphasize the necessity of remaining vigilant about potential inflation increases. Kent noted that current policies are contributing to slower demand growth and lower inflation. He also mentioned that no options are being excluded regarding future interest rate adjustments, per Bloomberg.

The US Dollar remains calm after posting gains on Tuesday. Investors turn cautious ahead of key US economic data releases later this week. The revised US Gross Domestic Product (GDP) for the first quarter (Q1) is scheduled to be released on Thursday, followed by the Personal Consumption Expenditure (PCE) Price Index on Friday.