Aussie Plunges as Strong US Data Sinks AUD/USD

AUD/USD suffered its worst daily fall in over three months as strong US data sent Treasury yields and the US dollar sharply higher. With Australian jobs data due today, the Aussie enters the release under pressure.

The US dollar was the strongest FX major on Wednesday after a strong set of flash PMIs reinforced hawkish Fed expectations and sent Treasury yields sharply higher. The composite PMI reached a five-year high according to S&P Global, raising concerns that the economy is reaccelerating.

This fueled a surge in Treasury yields, with investors anticipating further rate hikes from the Federal Reserve. As a result, the US dollar rallied across the board, pushing AUD/USD down to 0.69.