Trading the News: Australia Wage Price Index (WPI)
Updates to Australia’s Wage Price Index (WPI) may keep AUD/USD[1] under pressure as the gauge for household earnings is expected to hold steady at 2.1% per annum for the fourth consecutive quarter.
Signs of subdued wage growth should keep the Reserve Bank of Australia (RBA) on the sidelines as ‘household income has been growing slowly and debt levels are high,’ and Governor Philip Lowe & Co. may merely attempt to buy more time at the next meeting on September 4 as ‘the low level of interest rates is continuing to support the Australian economy.’
The wait-and-see approach for monetary policy may continue to foster a long-term outlook for AUD/USD especially as the Federal Reserve[2] appears to be on track to deliver four rate-hikes in 2018, but an unexpected pickup in Australia wage growth may spur a bullish reaction in the aussie-dollar exchange rate as it puts pressure on the RBA to lift the official cash rate (OCR) off of the record-low. Sign up and join DailyFX Currency Analyst David Song LIVE[3] for an opportunity to discuss potential trade setups!
Impact that Australia WPI has had on AUD/USD during the previous release
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
1Q 2018 |
05/16/2018 01:30:00 GMT |
2.1% |
2.1% |
