US inflation jumped more than expected, spiking to 3.7%, from 3.4%. The number was no shock to markets, although expectations had been tampered, due to subdued recent readings. This was not helped by surging oil prices, which blasted above US$95/barrel, following yet another oil tanker being sunk in the Straits of Hormuz. Iran are increasing efforts to hinder ships passing the Straits, adding pressure to oil prices, ahead of the US Mid-Term elections. The US Dollar also spiked, with the EUR crashing to 1.1120, while the GBP tumbled to 1.3150.The stronger reserve hit commodity currencies hard, with the AUD falling to 0.6950, while the NZD stumbled to 0.5570. Equity markets also faltered, especially with the heavily indebted AI sector, added overall pressure to markets. Local markets will be watching the release of Australian employment data, expected to be released, later this morning.
