With the latest Aussie inflation figures pushing the Reserve Bank of Australia (RBA) towards a rate hike, Australia’s 5-year Treasury yields jumped to the highest since May 2019 following the data, at 1.35% by the press time.

That said, the headline Consumer Price Index (CPI) remains unchanged at 0.8% QoQ, matching forecasts while easing below 3.1% market consensus to 3.0% on YoY. On the contrary, the Reserve Bank of Australia's (RBA) trimmed-mean CPI jumped past 1.8% expected and 1.6% prior readouts to 2.1% YoY whereas the quarterly readings also crossed the 0.5% forecast and the previous read to 0.7%.

It should, however, be noted that RBA Governor Philip Lowe earlier cited the need to wait for the Aussie wage numbers to confirm the reflation fears, which in turn probes AUD/USD bulls by the press time.

Also testing the quote’s upside is the 15-year high of US inflation expectations and the market’s cautious mood ahead of the US GDP.

Read: AUD/USD spikes to 0.7535 on strong Australia inflation, bulls eye 0.7565 key hurdle