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The AUD/USD pair extended its daily slide in the second half of the day on Friday and touched a weekly low of 0.7689. As of writing, the pair was losing 0.75% on a daily basis at 0.7694.
The U.S. Core Consumer Price Index (CPI) in May released last Thursday rose from 3% in April to 3.8% from a year earlier, exceeding 3.4% based on the market expectation. This reveals that the escalating inflation in America is faster than expected.
Gold started its bullish run at the beginning of April and extended it to May, reaching the yearly high of $1916 per ounce. With the bullish market in play, a deep pullback is imminent on Gold as the price couldn't go beyond $1910 after several attempts.
the uptrend of CPI and broader inflation are inevitable because of the continuous growth of oil prices recently. The escalating inflation should have fueled the increase of bond yields whereas the U.S. 10-year government bond yields have dropped recently, which is bewildering. The phenomenon is believed to be associated with the anxiety of the financial market over inflation.
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