AUD/USD steady following sell-off to fresh cycle lows

At 0.6855, AUD/USD is starting out the day flat in Asia following another sell-off to fresh cycle lows weighed by a sea of red on Wall Street while the greenback attracts a safe-haven bid again on Thursday. 

The antipodeans have been hit hard again with global shares falling to their lowest point in 18-months, supporting the greenback to a fresh 20-year-high. The markets are worried that inflation pushing up interest rates will bring the global economy to a standstill which is driving up the US dollar.

Additionally, weighing on risk sentiment further, tensions between Europe and Russia escalated on Thursday. Finland said it would apply to join NATO "without delay." Sweden is expected to follow.  Russia has said it will be forced to take "retaliatory steps" over its neighbour Finland's move to join Nato. A foreign ministry statement said the move would seriously damage bilateral relations, as well as security and stability in northern Europe, the BBC reported. 

As for US data, the headline April Producer Price Index climbed in line with expectations by 0.5% MoM. The annual rate was left at 11.0%. The core measure rose 0.4% MoM (0.7% expected), down from a revised 1.2% in March. Core rose 8.8% YoY vs 9.6% YoY. Consequently, US yields were softer. The yield on the US 10-yr note fell 9.4bps to 2.83%.