Dollar steady ahead of Fed decision, Aussie slips as CPI misses expectations

The U.S. dollar was steady in Asian trade ahead of the Federal Reserve’s April 28-29 policy decision, while the Australian dollar slipped after a softer-than-expected inflation print.

Reuters-republished coverage said the Australian dollar weakened after Australia’s quarterly trimmed-mean inflation came in at 0.8% for the first quarter, slightly below expectations of 0.9% or higher. The Australian Bureau of Statistics later said annual CPI rose 4.6% in the 12 months to March 2026, with trimmed-mean annual inflation at 3.3%.

The ABS also said the March monthly CPI rose 1.1%, driven largely by transport and fuel prices. The mix of softer core inflation and hotter headline inflation left traders focused on what it could mean for the Reserve Bank of Australia’s next move.

For FX markets, the immediate focus remains the Fed statement due later on April 29. Traders are watching for whether policymakers hold rates unchanged and how the statement shapes the next move in the dollar.