AUD/USD gains ground ahead of wage growth - MarketPulse

AUD/USD gains ground ahead of wage growth – MarketPulse

The Australian dollar has posted gains on Tuesday. AUD/USD is up 0.19%, trading at 0.6620 in the North American session at the time of writing.

Australian wage growth expected to remain unchanged

Australia’s wage growth for the first quarter is expected to remain unchanged. Wages rose 4.2% in the fourth quarter of 2023, the highest since 2009, with most categories showing increases. On a quarterly basis, wage prices rose 1.9%, which was the lowest gain in three quarters. If the release is not within expectations, we could see a reaction from the Australian dollar.

Is the Reserve Bank of Australia considering a rate cut? The central bank hasn’t shown any rush to shift policy and held rates at 4.35% for a fourth straight time at last week’s meeting. The RBA has stressed that rate policy will be data-dependent and has made the battle against inflation its top priority.

A rate cut isn’t coming until inflation falls and the RBA doesn’t expect inflation to fall within the target range of 2-3% before 2025. Inflation has come down to 3.6% but the last phase of getting inflation within target could be the most difficult part, as the Federal Reserve has discovered. Unless inflation surprises with a sharp drop in the coming months, a rate cut is unlikely before November or early 2025.

Federal Reserve Chair Powell speaks at an event in Amsterdam later today and the markets will be looking for hints regarding a rate cut. The Fed has delayed plans to cut rates as the US economy remains resilient and inflation has unexpectedly accelerated. The US releases April inflation data this week and a drop in inflation would increase the likelihood of a rate cut in September. The US releases PPI is expected to remain unchanged at 2.4% in April while CPI is projected to ease to 3.6%, down from 3.8% in April.

AUD/USD Technical

  • AUD/USD tested support at 0.6602 earlier. Below, there is support at 0.6559
  • 0.6645 and 0.6688 are the next resistance lines

AUD/USD gains ground ahead of wage growth - MarketPulse PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Kenny Fisher

A highly experienced financial market analyst with a focus on fundamental and macroeconomic analysis, Kenny Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in major online financial publications including, Seeking Alpha and FXStreet. Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher
Kenny Fisher

Latest posts by Kenny Fisher (see all)

Time Stamp:

More from MarketPulse