Last night saw the follow up producer inflation print from the US which came in less than expected, and coupled with a higher than expected weekly initial jobless claim release caused a run to safety of the USD. Meanwhile Wall Street had a mixed session as trader’s weighed up the Fed’s next move given the recent inflation data and amid some poorer earnings results.
The Australian dollar finally fell down alongside other major currencies in the run to King Dollar with Euro hitting a monthly low to almost cross below the 1.09 handle.
Meanwhile 10 year US Treasury yields pulled back even further on the PPI print, now well below the 3.4% level as oil prices reversed their rebound with Brent crude stalling below the $75USD per barrel level.
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