News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Crude oil getting whacked today with prices down -4% on the session. Currently probing its 50-day moving average with subsequent support appearing at the psychological $70.00/bbl level before traders eye July lows. Link to Analysis - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/07/31/crude-oil-forecast-price-action-mired-by-shaky-risk-appetite.html #OOTT $CL_F $USO https://t.co/1CkmlXdPQa
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 0.08% Wall Street: 0.04% FTSE 100: -0.17% France 40: -0.19% Germany 30: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/hke8hL7JK2
  • The recent decline in USD/CAD appears to be stalling as it struggles to extend the series of lower highs and lows from the previous week. Get your $USDCAD market update from @DavidJSong here:https://t.co/937N1stI8E https://t.co/M85BaWAn4a
  • Nasdaq levels I outlined this morning and will be watching throughout the week following the 'goldilocks' manufacturing report from @ISM. Risk appetite now focused on covid trends + services PMI and NFPs due. Link to Analysis - https://www.dailyfx.com/forex/market_alert/2021/08/02/nasdaq-fluctuates-following-rosy-ism-manufacturing-report.html $NDX $QQQ #StockMarket https://t.co/RrMlnb8deB
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.39% 🇯🇵JPY: 0.38% 🇳🇿NZD: 0.19% 🇨🇭CHF: 0.07% 🇬🇧GBP: 0.01% 🇨🇦CAD: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6HWFio3Xfm
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: France 40: 0.89% FTSE 100: 0.70% Wall Street: 0.42% US 500: 0.37% Germany 30: 0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/p8FYAQk52r
  • 🇲🇽 Markit Manufacturing PMI (JUL) Actual: 49.6 Previous: 48.8 https://www.dailyfx.com/economic-calendar#2021-08-02
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: -0.08% Silver: -0.15% Oil - US Crude: -1.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/SBDzWJasKB
  • Heads Up:🇲🇽 Markit Manufacturing PMI (JUL) due at 14:30 GMT (15min) Previous: 48.8 https://www.dailyfx.com/economic-calendar#2021-08-02
  • 🇺🇸 Construction Spending MoM (JUN) Actual: 0.1% Expected: 0.4% Previous: -0.2% https://www.dailyfx.com/economic-calendar#2021-08-02
Stagnant Australia Wage Price Index (WPI) to Fuel AUD/USD Weakness

Stagnant Australia Wage Price Index (WPI) to Fuel AUD/USD Weakness

David Song, Strategist

Trading the News: Australia Wage Price Index (WPI)

Updates to Australia’s Wage Price Index (WPI) may fuel the recent weakness in AUD/USD as the headline reading is expected to hold steady at an annualized 2.1% in the first-quarter of 2018.

Image of DailyFX economic calendar

Signs of stagnant wage growth may spark a bearish reaction in the Australian dollar as it encourages the Reserve Bank of Australia (RBA) to retain the record-low cash rate throughout 2018. In response, Governor Philip Lowe and Co. may stick to the current script at the next interest rate decision on June 6, with AUD/USD at risk of facing headwinds ahead of the meeting as market participants push out bets for an RBA rate-hike.

However, a positive development may prop up AUD/USD as it puts pressure on the RBA to start normalizing monetary policy, and the central bank may start to change its tune in the second-half of the year as ‘further progress in reducing unemployment and having inflation return to target is expected.’ Sign up and join DailyFX Currency Analyst David Song LIVE for a broader discussion on current themes and potential trade setups!

Impact that the Australia WPI had on AUD/USD during the previous quarter

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

4Q

2017

02/20/2018 00:30:00 GMT

2.0%

2.1%

-11

-81

4Q 2017Australia Wage Price Index (WPI)

AUD/USD 15-Minute Chart

Image of AUDUSD 15-minute chart

Australia’s Wage Price Index (WPI) unexpectedly increased for the second consecutive quarter, with the headline reading climbing to an annualized 2.1% from 2.0% in the three-months through September.

The development was overshadowed by a 19.4% decline in construction work done, which marked the biggest decline since the recordkeeping began in 1986. The Australian dollar struggled to hold its ground following the mixed data prints, with AUD/USD grinding lower throughout the day to close at 0.7804.

AUD/USD Daily Chart

Image of AUDUSD daily chart
  • The rebound in AUD/USD appears to have fizzled ahead of the 0.7590 (100% expansion) region as it snaps the recent series of higher highs & lows, with the Relative Strength Index (RSI) highlighting a similar dynamic as the oscillator flops ahead of trendline resistance.
  • A fresh bearish sequence has started to take shape, with a break of the monthly-low (0.7412) bringing the 0.7340 (61.8% retracement) area back on the radar, which largely lines up with the 2017-low (0.7329).

Additional Trading Resources

New to the currency market? Want a better understanding of the different approaches for trading? Start by downloading and reviewing the DailyFX Beginners Guide!

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader series on how to effectively use leverage along with other best practices that any trader can follow.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES