The 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.