The Australian dollar’s AUD/USD pair dropped almost 0.3%

The Australian dollar weakened slightly following a softer-than-expected inflation print, while the U.S. dollar moved little on Wednesday as focus remained on Iran-U.S. negotiations to end their war.

The Australian dollar’s AUD/USD pair dropped almost 0.3% after consumer price index inflation data read softer than expected for April.

CPI inflation also cooled slightly from the prior month, aided by a decline in oil prices from their March highs, as well as the halving of a key government duty.

Underlying inflation rose slightly in the month, indicating that beyond energy, other price pressures still remained in play.

Capital Economics analysts said the reading furthered the case for the Reserve Bank of Australia to leave interest rates unchanged in June. But they warned that their base case remained for inflation to push higher later in the year, likely inviting more rate hikes by the RBA.

In the U.S., traders kept to the sidelines ahead of hotly anticipated inflation and growth data due later in the week, while caution over the Iran war also weighed after renewed U.S. action against the country.

Among other currencies, the euro gained 0.1%.

The yen’s USD/JPY pair dropped slightly after rising back above 159 yen, while the yuan’s USD/CNY pair remained close to a three-year low.

The dollar index and dollar index futures moved little in Asian trade, steadying after logging brief gains earlier in the week.

Focus was on key U.S. economic prints due in the coming days. A revised reading on first-quarter gross domestic product data is due on Thursday, while PCE price index data– which is the central bank’s preferred inflation gauge– is also due on Thursday.