The Australian dollar witnessed today a sharply decline against its all major counterparts, especially it dropped to the most level in a month versus the American dollar as a revised inflation calculating that pushed the RBA to increase interest rates to 4.75%.

Furthermore, the revised method of calculating inflation means that the Reserve Bank of Australia is to reduce its CPI forecasts for the Jun-December, adding the Bank will cut its benchmark interest rates by 155 basis points during the next 12 months.

On the other hand, the New Zealand dollar (Kiwi) also plunged against the US dollar after the US economy reported that its retail sales stagnated. Moreover, the Reserve Bank of New Zealand (RBNZ) kept benchmark interest unchanged at 2.50% during this month, damping the demand for the Kiwi.