The Australian dollar is sitting at Two year lows of 0.61 cents, due to Trump 2.0 global trade war and China slowing down. Sticky inflation is now, returning 'inflation' as the Fed and central banks may refrain from cutting rates.

Did U.S. inflation abate or never went away?  Either way, inflation is returning to the U.S., more so the markets are pricing in the Trump 2.0 global trade war or America vs the World Part Two, as he (Trump) threatens Tariffs on everybody with strange claims that he will take back the Panama canal militarily and invade Greenland, if necessary, to secure America's economic future, very Fascist inspired economic policies which are always inflation driven.

The Australian dollar is both a risk aversion trade and a bellwether trade re: Chinese economy, which is probably already in deflation, collapsing through its 2023, 2024 price support of 0.666, tracking the falling Iron Ore price, Australia's largest export market to China.  Which is struggling to stay above $100 a ton, please refer to the below pane.

The stagnation call for Australian economy stands, on both inflation returning and/or sticky and China struggling to stay out of deflation, which will continue to hit the AUD and the economy.