Aussie Dollar Drops as Hot US Producer Inflation Lifts Yields
AUD/USD fell 0.80% to 0.7159 after US producer inflation beat estimates, boosting US yields and hawkish Fed bets.
AUDUSD
The Australian dollar lost ground against the US dollar on Thursday, closing down 0.80% as US producer price data came in above expectations. The pair traded around 0.7159 after earlier reaching a session peak.
Stronger US producer inflation pushed Treasury yields higher and led markets to price in a more hawkish Federal Reserve stance. That supported the US dollar and weighed on the Aussie.
Traders now turn their attention to the upcoming US CPI release, which is seen as the next key test for rate expectations and near-term direction in AUD/USD.
Source: FXStreet Forex News