The Australian dollar fell to an almost one-month low as it continues to lose ground following last week’s weaker than expected consumer price index (CPI) figures.

At 1700 AEST on Tuesday, the local unit was trading at 92.39 US cents, down from 92.96 cents on Monday.

During the local session the currency fell as low as 92.23 US cents, its lowest level since April 4.

FXCM market analyst David de Ferranti said said the chances of a Reserve Bank cash rate increase looks less likely after March quarter inflation stayed within the bank’s two to three per cent target range.

“We have seen some broad-based weakness for the Australian dollar since mid-April, which may be attributable to a decline in the currency’s yield advantage against its major counterparts,” he said.

“Australian economic data has been disappointing on balance recently, including last week’s lower-than-anticipated CPI figures, which has weighed on expectations for a potential rate hike from the RBA.”

Financial markets are cautious ahead of key economic events later in the week.

European inflation figures for April are released on Wednesday night, Australian time, Chinese manufacturing numbers are out on Thursday and US employment data will be released on Friday.

On Thursday morning the US Federal Reserve is expected to announce a further scaling back of its economic stimulus program, which will boost the US dollar and weigh on the Australian dollar.