AUD/USD Slumps Amid US CPI Surprise and Crude Oil Gains
AUD/USD slipped as yields surged in response to the US Consumer Price Index (CPI) data release. The USD also gained strength, while crude oil prices rose.
The AUD/USD pair fell after the US CPI data showed a higher-than-expected inflation rate of 8.6% year-over-year. This increase in yields weighed on the Australian dollar, causing it to decline against the US dollar.
The surge in crude oil prices also contributed to the AUD/USD's downward trend. The price of West Texas Intermediate (WTI) crude oil rose above $83 per barrel, which may have a positive impact on the US economy but negatively affected the Australian dollar.