DAILY CURRENCY OUTLOOK

* AUD/USD rallies to fresh 6-week high

* USD plummets on weaker than expected US Inflation numbers

* US mid-term elections take a back seat

Weaker than expected US Inflation numbers (Consumer Price Index) for October and the 12 months to date have seen the USD fall sharply against most major currencies, including the Aussie. The data released overnight AEDT was well short of expectations showing a rise of 0.4% versus 0.6% expected for October and an annual Core Inflation reading (the US Fed’s preferred gauge) of 6.3% versus 6.5% expected and 6.6% previous. Adding further pressure on the greenback was a higher than expected weekly unemployment (jobless claims) number. Markets quickly sold the USD in anticipation that the US Federal Reserve will now start to scale back the pace of their rate hikes. The Fed next meets on 12-13 December. Just prior to the release, the Aussie was trading around 64 cents after a Sydney close of 0.6419. Within minutes (literally) after the release, it rallied to 0.6554 and then continued to climb through the night/early morning. Just prior to 8 am this morning, it touched 0.6630 (not seen since 22 Sept) and has drifted off a little. Next week we look forward to what lies ahead however, sometimes a day, not a week, is a long time in global markets.