The Australian Dollar fell 0.43% to 0.6775 on Friday as persistent US inflation data fueled expectations for further Federal Reserve tightening. US 10-year Treasury yields climbed to a three-week high of 5.14% after core CPI rose 0.3% MoM in October, outpacing the 0.2% forecast. Chicago Fed President Austan Goolsbee warned that worsening inflation could necessitate a more aggressive policy response, further pressuring the risk-sensitive Aussie.
AUD/USD fell 0.43% to around 0.6775 on Friday as US 10-year yields rose to about 5.14%, their highest in three weeks, after October core CPI rose 0.3% MoM versus 0.2% expected. Hotter inflation and Chicago Fed's Goolsbee's warning of a possible more aggressive policy response favor the USD, while the RBA is seen as done tightening. A daily close below support at 0.6766 would open the way to 0.6663.
- ▼ October core CPI +0.3% MoM vs 0.2% expected, third straight 0.3% rise
- ▼ US 10-year yield at ~5.14%, highest in three weeks
- ▲ RSI (14) near 30.7 hints at oversold, stretched downside conditions without a clear reversal signal
- ▲ October PPI rose 0.3% MoM, below the 0.4% expected, slightly tempering tightening bets