Forex
AUD Slides as Hot PPI Data Triggers Hawkish Fed Bets
The Australian Dollar experienced a decline against the US Dollar on Thursday, losing 0.80% of its value as US producer inflation exceeded estimates.
This triggered pricing for a more hawkish Federal Reserve, with money markets now giving a nearly 71% chance that interest rates will be increased by 25 basis points at next week's meeting.
The AUD/USD traded at 0.7159 after reaching a peak of 0.7223, while the US Dollar Index (DXY) finished the session with gains close to 0.30%.
US Treasury yields also rose sharply, underpinning the Greenback, and Brent and WTI crude benchmarks rose above $100 per barrel due to escalating tensions between the US and Iran.