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

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.