April US producer prices rose 6.0% YoY, exceeding forecasts and bolstering the dollar against the Australian currency.
The AUD/USD pair held near 0.7250 after US Producer Price Index data for April climbed 6.0% year-over-year, surpassing the 4.9% consensus estimate. The core PPI, excluding food and energy, also rose above expectations at 5.2% YoY and 1.0% month-over-month.
Economists had anticipated a softer print, with prior expectations set at 4.9% for headline PPI and 4.3% for core. The stronger-than-expected inflation reading provided support to the USD, limiting gains for the Australian dollar.
Global oil inventories fell by 4 million barrels per day in March and April due to Middle East supply disruptions, according to a coordinating agency. The market is expected to remain undersupplied until October, even if the conflict ends soon.