- AUD / USD is looking to post its biggest daily percentage loss since March.
- The US dollar index rose sharply after US inflation data.
- The major Wall Street indices suffer heavy losses on Wednesday.
The pair AUD/USD It broke below 0.7800 on Wednesday and fell sharply in the second half of the day under pressure from the general strength of the USD. At time of writing, the pair was down 1.33% on the day at 0.7735.
US CPI data fuels USD rally
Data released by the US Bureau of Labor Statistics revealed on Wednesday that annual inflation, as measured by the Consumer Price Index (CPI), rose to 4.2% in April from 2.6% in March. Additionally, the core CPI rose to 3% from 1.6% in the same period. Both readings beat analysts’ estimates by a wide margin and led to a sharp rise in US Treasury yields.
At the moment, the benchmark 10-year US Treasury yield is up 4.3% on the day and the US Dollar index is up 0.62% to 90.72.
Meanwhile, the major Wall Street indices are down between 1.5% and 2.4%, providing an additional boost to the dollar as a safe haven.
In the early trading hours of the Asian session on Thursday, the EIS new home sales and consumer inflation expectations for May will be on the Australian economic docket. Later in the day, weekly data from the US Department of Labor initial jobless claims and April US Producer Price Index (PPI) figures will also be considered for a new impulse.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
