The Aussie Dollar is Steady after Consumer Confidence Data

Australian dollar gdp, aussieThe Aussie Dollar (AUD/USD) shrugged off news that wages rose exactly as expected in Australia, this morning.

This morning, the Down Under released its official Wage Cost Index. This number rose by 0.5 percent, quarter on quarter, and 1.9 percent annually. Exactly a analysts expected. The Reserve Bank of Australia’s (RBA) monetary policy meeting minutes, released this week, suggested that the panel sees only modest wage pressure in the coming months. These latest numbers seem to confirm their view.

The wage data is not very likely to shift the RBA’s stance with monetary policy. The next move, could come in 2018 and would be a likely rate hike. This is based on consumer price inflation is back within the central bank’s target band.

Australia also released, today, that their consumer confidence had weakened for the month of May. The Westpac’s index on the subject dropped 1.1 percent on the month. This means its fall from April’s 0.7 percent decline is accelerating.

The Aussie is more focused on US political Drama

After the Data release, the Aussie stayed steady around 0.7420 for much of the morning as investors ignored the data. AUD traders are more focused on the mounting drama around US President Donald Trump. It is becoming apparent that he is unlikely will be able to pass any of his reforms meaning the Fed will relax its rate hike schedule. This should, in turn, lend some support to the sentiment sensitive Australian dollar.

David Frank

David Frank

Chief Market Strategist at CupO'Forex
David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.
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