Aussie fails to gain support despite rise in wages

Posted Wednesday, August 15, 2018 by
Arslan Butt • 1 min read

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

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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