FX.co ★ Australian Dollar Falls on Weak Data

The Australian dollar fell below $0.662 against the US dollar, marking its fourth straight day of decline as investors evaluated disappointing economic indicators. The Westpac-Melbourne Institute Consumer Sentiment Index dropped by 9% in December 2025 on a month-to-month basis, slipping below the critical 100-point threshold after briefly moving into positive territory the previous month. Inflation has emerged as the primary concern, with Westpac highlighting that consumer price index levels have surpassed expectations for about four months in a row. This persistent inflationary pressure has made consumers more wary about interest rates, especially after the Reserve Bank of Australia signaled last week that its cycle of rate cuts is likely over. Concurrently, preliminary data revealed that the Composite PMI fell to a seven-month low of 51.1 in December. The growth rate in the services sector decelerated to 51 from 52.8, while manufacturing activities showed slight improvement, rising to 52.2 from 51.6.