The AUD dropped below the 0.72 cent handle amidst official wage data released yesterday. The quarterly adjusted data came in at the previously forecasted 0.6%, lifting the annual wage growth to 2.3 per cent and pushed the AUD lower, dropping below the 0.72 handle to 0.7190.
Broader direction and focus remains with ongoing the US and China trade relations. As delegates discussions develop we continue to see Yuan volatility influencing AUD flows. The Aussie continues to hold a negative tone, trading close to a week-long low holding only marginally above the support at 0.7170.
Immediate attention turns to announcements coming out today regarding the Australian Bureau Statistics monthly releases of employment change and unemployment rate. Forecasts are expected to come in at 15,000 for employment change with unemployment holding firm at 5.3%. With analyst pricing in little change a print well beyond forecast growth may dramatically shift the expectations for the RBA’s next stance on interest rates. The major release has the potential to generate volatility for the AUD and may be the catalyst that helps the embattled unit extend the recent upturn.
The Australian Dollar recovered in the North American session and has opened strong this morning at 0.7230.