Aussie Wages Hit Decade Highs
Aussie Wages Create Uncertainty
The latest Australian wage growth data released overnight has made it a little harder markets to call the next RBA meeting. The quarterly reading came in below forecasts but was seen hitting fresh decade highs at 0.8%. Just below the 0.9% forecast, the reading offers some hope that upward wage momentum is peeling back. However, with the annual reading at fresh decade highs year-on-year, the argument for a further RBA hike remains a strong one. Annual pay growth rose to 3.7%, above the 3.6% the market was looking for and up firmly from the prior reading of 3.4%.
RBA in Focus
The RBA took traders by surprise last time around when it hikes rates by a further .25% despite no expectation or signal of a forthcoming hike. At the meeting, the RBA noted that while inflation was cooling, it was not falling fast enough and therefore required more action to help bring it down to target quicker. This latest wage data suggests that inflation stickiness is likely to remain a problem near term and, consequently, the balance of risks suggests that a further hike is likely.
Technical Views
EURAUD
The sell off in EURAUD has seen the market breaking down below the rising trend line and several structural support levels. Price is currently sitting on support at the 1.6173 level. With momentum studies turned bearish, the focus is on a break lower from here with 1.5975 the next level to note to the downside.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.