The decline from the monthly high (0.7891) has push AUD/USD towards the 50-Day SMA (0.7708) as the exchange rate carves a series of lower highs and lows.
A worrisome bout of inflation struck the U.S. economy in April, with consumer prices for goods and services surging 0.8% the largest monthly jump in more than a decade and the year-over-year increase reaching its fastest rate since 2008.
Wednesday, 12 May 2021 11:03 PM MYT
Federal Reserve Vice Chairman Richard Clarida says the Fed is following the course of the virus closely as it will determine the course of the economy. ― Reuters pic
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WASHINGTON, May 12 The larger-than-expected spike in US inflation last month “surprised” Federal Reserve Vice Chair Richard Clarida, but he said today the central bank is ready to act if needed to contain prices.
However, the Fed continues to believe the sharp price increases over the past two months are due to the rebound following the unprecedented shock inflicted by the Covid-19 pandemic and will not last, he said.
By MARTIN CRUTSINGER | Associated Press | Published: May 12, 2021 WASHINGTON A worrisome bout of inflation struck the U.S. economy in April, with consumer prices for goods and services surging 0.8% the largest monthly jump in more than a decade and the year-over-year increase reaching its fastest rate since 2008. The acceleration in prices, which has been building for months, has unsettled financial markets and raised concerns that it could weaken the economic recovery from the pandemic recession. Wednesday s report from the Labor Department showed sharply higher prices for everything from food and clothes to housing. A 10% surge in the prices of used cars and trucks a record jump accounted for roughly one-third of last month s overall increases.
April Consumer Price Increases Largest Rise in Over a Decade
On 5/12/21 at 12:29 PM EDT
Consumer prices for goods and services surged 0.8 percent in April, the largest monthly rise in over a decade.
This price acceleration that has been building for months could weaken the economic recovery from the coronavirus pandemic, as a U.S. Labor Department report shows sharp price inflation on everything from food to housing. It looks like inflation pressures are not only building but are likely to be here at least through the rest of the year, Joel Naroff, chief economist at Naroff Economic Advisors, told the Associated Press. With growth robust, firms have a measure of pricing power that they haven t had in decades, and they appear to be using it.