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.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Bitcoin
Bullish
More View more
Real Time News
  • The $JPY is the third most traded currency by volume with an ADV (average daily volume) above $1.0 bn. It is known to be one of the world's 'safe-haven' currencies. Find out the other currencies in this basket and how to trade them here: https://t.co/QZ94q44M8c https://t.co/K8SUpwWh7j
  • Huawei given the go ahead for partial access of 5G networks. - Huawei has also been designated a high risk vendor Secretary of State Pompeo due to arrive in London tomorrow Boris Johnson will visit Washington next week
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.48%, while traders in US 500 are at opposite extremes with 67.58%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/R2IDUjwEzT
  • LIVE NOW! Analyst and Editor @MartinSEssex discusses the most important events and themes that have driven market sentiment and will drive it in the days ahead here - https://www.dailyfx.com/webinars/181540619?CHID=9&QPID=917720
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr https://t.co/8wKhSioCSt
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Gold: -0.13% Silver: -0.36% Oil - US Crude: -0.59% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/HXzJBxsQke
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.08% 🇨🇭CHF: 0.05% 🇪🇺EUR: -0.02% 🇦🇺AUD: -0.29% 🇳🇿NZD: -0.32% 🇬🇧GBP: -0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tKfJiltKvZ
  • Coming up at half past the hour: my weekly free webinar on trading sentiment. Do join me if you can. You can sign up here: https://www.dailyfx.com/webinars/181540619?CHID=9&QPID=917711
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.24% US 500: 0.21% France 40: 0.17% Germany 30: -0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/rF1IZGBHv8
  • LIVE IN 30 MIN: Analyst and Editor @MartinSEssex discusses the most important events and themes that have driven market sentiment and will drive it in the days ahead here - https://www.dailyfx.com/webinars/181540619?CHID=9&QPID=917720
Subdued Australia Wage Price Index (WPI) to Keep AUDUSD Under Pressure

Subdued Australia Wage Price Index (WPI) to Keep AUDUSD Under Pressure

2019-05-14 23:30:00
David Song, Currency Strategist
Share:

Trading the News: Australia Wage Price Index (WPI)

Another 2.3% print for Australia’s Wage Price Index (WPI) may do little to curb the recent decline in AUD/USD as it puts pressure on the Reserve Bank of Australia (RBA) to implement a rate-cut in 2019.

Image of DailyFX economic calendar

The RBA may continue to strike a dovish tone at the next meeting on June 4 amid the threat for below-target price growth, and the central bank may take additional steps to insulate the economy as ‘a further improvement in the labour market was likely to be needed for inflation to be consistent with the target.’ In turn, signs of subdued wage growth may produce headwinds for the Australia dollar as it spurs bets for an imminent rate-cut, and the central bank may have little choice but to reestablish its easing-cycle especially as the U.S. and China, Australia’s largest trading partner, struggle to reach a trade deal.

However, an unexpected pickup in the WPI may generate a short-term rebound in AUD/USD as it encourages Governor Philip Lowe & Co. to be patient and retain a wait-and-see approach for monetary policy. Sign up and join DailyFX Currency Strategist David Song LIVE for an opportunity to discuss key themes and potential trade setups surrounding foreign exchange markets.

Impact that Australia’s WPI 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)

4Q

2018

02/20/2019 00:30:00 GMT

2.3%

2.3%

-1

-4

4Q 2018 Australia Wage Price Index (WPI)

AUD/USD 10-Minute Chart

Image of audusd 10-minute chart

Australia’s Wage Price Index (CPI) held steady at 2.3% in the fourth-quarter of 2018, with the gauge indicating a 0.5% expansion on a quarter over quarter basis amid projections for a 0.6% print. A deeper look at the report showed wages in arts and recreation services increasing 2.8% compared to the 2.3% expansion in the third-quarter, while earnings for IT telecommunications narrowed to 1.5% from 1.8% during the same period.

The mixed prints sparked a limited reaction in the Australian dollar, with AUD/USD largely consolidating throughout the day to close at 0.7164. Learn more with the DailyFX Advanced Guide for Trading the News.

AUD/USD Rate Daily Chart

Image of audusd daily chart
  • The AUD/USD rebound following the currency market flash-crash has been capped by the 200-Day SMA (0.7156), with the exchange rate marking another failed attempt to break/close above the moving average in April.
  • AUD/USD may continue to give back the rebound from the 2019-low (0.6745) as the wedge/triangle formation in both price and the Relative Strength Index (RSI) unravels, with the break/close below the 0.6950 (61.8% expansion) area opening up the Fibonacci overlap around 0.6850 (78.6% expansion) to 0.6880 (23.6% retracement) followed by the 0.6730 (100% expansion) area.
  • Will keep a close eye on the RSI as it approaches oversold territory, with a break below 30 raising the risk for a further decline in the exchange rate as the bearish momentum gathers pace.

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 Strategist

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES

News & Analysis at your fingertips.