The market's focus on trading in the New York session yesterday was directed to the release of inflation data from the United States (US) which had an impact on the movement of the US dollar currency.
Previously, the sentiment of Donald Trump's victory in last week's election was a factor driving the strengthening of the US dollar.
But after the inflation data was published yesterday, the US dollar found additional support to further extend its strengthening pattern and continue to undercut other major currencies.
Looking at the report, the US consumer price index (CPI) for October met the forecast to rise again to a level of 2.6%.
This shows a change in the US inflation reading which previously displayed a downward trend since last April's reading.
This situation had a strengthening effect on the US dollar as analysts saw emerging challenges for the Federal Reserve (Fed) to continue its monetary policy easing measures after implementing a smaller rate cut at the November meeting.
The focus indicator for the US dollar has seen the dollar index (DXY) surge to the highest level since November 2023, reaching a level of 106,500 points.
Meanwhile, the US 10-year treasury yield (US10Y) rose to a 4-month high close to 4.50%.
The focus for today (Thursday) will be on the US producer price index (PPI) data for investors to evaluate changes in commodity prices at the producer level.
In the Asian session, the Australian employment report was given first attention which saw less encouraging figures.
Employment growth in Australia in October recorded a weak reading of just 15,900 below expectations of 25,200. While the unemployment rate met the forecast remaining at 4.1%.
