Aussie fails to gain support despite rise in wages

Good morning, traders.

According to the Australian Bureau of Statistics, the wage price index jumped from 0.5% to 0.6%. It’s a leading indicator of consumer inflation. When businesses pay more for labor the higher costs are usually passed on to the consumer. Despite the positive data, the AUD/USD failed to take a bullish turn. I must say, it’s all because of an aggressive buying in the USD.

AUD/USD - Weekly Chart

AUD/USD – Weekly Chart

Technically, the AUD/USD is likely to test the double bottom support level of $0.7170. You can’t find this setup on the 4 hour or daily chart, but you need to zoom out to the weekly timeframe. Whereas, the immediate resistance can be found at 0.7257.

 

 

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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