Forex
Oil Price Surge Triggers AUD/USD Crash Amid Fed Hike Bets
AUD/USD plummeted as crude oil prices surged and Treasury yields rose, sending the US dollar soaring in tandem with expectations of a September Fed hike.
The Australian dollar led FX majors lower, falling over 0.8% to its worst day in 56, while Wall Street weakened ahead of the release of CPI data.
Crude oil prices rose 6.5% on Thursday and are up more than 11% from Friday's close, with WTI trading around $103 and Brent now above $107.
The US dollar index enjoyed its best day in nine, forming a bullish pinbar and a three-bar bullish reversal (morning star) on the daily chart, while implied volatility is finally curling higher ahead of CPI.