AUD/USD: Muted response to above-forecast Australian wage price index

Australian Dollar sees little action after above-forecast Australian wage growth data.
The wage price index rose 0.6% quarter-on-quarter in the second quarter.

Omkar Godbole FXStreet Contributor

Australia reported a better-than-expected wage growth data for the second quarter at 01:30 GMT, but so far, the AUD has failed to pick up a strong bid.

The AUD/USD pair rose ten pips to hit a session high of 0.6809 immediately after the upbeat data hit the wires and is now trading largely unchanged on the day at 0.6797.

The Australian wage price index rose 0.6% quarter-on-quarter in the second quarter, beating the estimated print of 0.5%. The annualized figure came in at 2.3% as expected.

The RBA expects higher wages to lead to higher consumption and inflation, so the better-than-expected wage price index should have put a bid under the AUD.

The Australian currency, however, is not impressed, which indicates the investors believe the wage growth data is not strong enough to deter the RBA from cutting rates further in the near future.

These fears could be bolstered if China's retail sales and industrial production data due at 02:00 GMT, prints well below estimates. In that case, the AUD/USD will likely fall toward Tuesday's low of 0.6746.

On the other hand, an above-forecast data could lift the AUD/USD pair to levels above 0.68.

Pivot points

1. R3 0.6899
2. R2 0.6859
3. R1 0.6828
PP 0.6787
1. S1 0.6757
2. S2 0.6716
3. S3 0.6685

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD bounces off four-day lows, still below 1.3500

GBP/USD sticks to the bearish tone on Thursday, coming down to the 1.3480 region in the latter part of the NA session. In the meantime, Cable’s weakness comes as investors continue to assess mixed UK data, poor US results, and the persistent uncertainty surrounding the US-Iran conflict.

EUR/USD looks apathetic around 1.1530

EUR/USD reverses Wednesday’s downtick and trades with modest gains in the 1.1530 region following the end of the NA session on Thursday. The pair’s tepid advance comes on the back of the absence of clear direction in the US Dollar despite tensions from the Middle East appear far from alleviated. Later on Friday, investors are expected to monitor the the releases of another revision of GDP figures in the Euroland, US Retail Sales and the preliminary U-Mich gauge.

Gold loses the grip, recedes toward $4,350

Gold extends its intraday pullback on Thursday, retesting the $4,350 zone per troy ounce, or three-day troughs. Meanwhile, the yellow metal continues to monitor developments from the Middle East as well as bets surrounding the potential Fed’s rate path.

Ethereum Price Forecast: Fidelity plans to add staking to ETH ETF amid yield debate

Asset manager Fidelity has filed with the US Securities and Exchange Commission (SEC) to permit staking in its Ethereum (ETH) exchange-traded fund (ETF), the Fidelity Ethereum Fund (FETH), which holds over $898 million in net assets.

Week ahead – Summer lull could be tested by geopolitics and central bank expectations

US dollar stabilizes as September Fed hike bets remain subdued. Market volatility stays low, but thin liquidity could amplify movements. Key UK data could challenge pound strength; euro craves bullish catalysts.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.