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Aussie jumps the most in two months as US inflation misses

The AUDUSD jumped higher overnight – in its biggest one-day jump since 21 March – as a miss in US inflation derailed the US dollar’s recent run higher.

The US dollar has climbed rapidly higher over the last month as better US data and a more optimistic tone from the US Federal Reserve boosted the greenback. The AUD weakened.

Last night’s poor inflation reading, which saw core inflation up by just 0.1% in April, pressured the USD as markets quickly took profits after the US dollar's gains.

The AUDUSD was up 0.9%.

AUDEUR at highs

The AUD was higher in most other markets.

The AUDEUR climbed 0.4% as it ended at the highest closing level since 16 March.

The AUDCHF returned to three-month highs while the AUDJPY jumped 0.6%.

The AUDGBP was up 1.0% after last night’s Bank of England meeting kept UK interest rates on hold.

Draghi speaks

Tonight’s focus shifts to Europe with a major speech from European Central Bank president Mario Draghi due at 11.15pm AEST.

Next week, European inflation and Australian employment figures will be the key events.

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