AUDUSD Forecast – Aussie Tumbles after Wage Growth Misses Forecasts

The Australian Dollar is lower on Wednesday after a report showed Australian wages grew at the fastest annual pace in a decade last quarter, but the figure came in short of market forecasts, which could lessen the pressure on the Reserve Bank of Australia (RBA) for further aggressive interest rate hikes.

At 02:56 GMT, the AUDUSD is trading .6836, down 0.0020 or -0.28%. On Tuesday, the Invesco CurrencyShares Australian Dollar Trust ETF (FXA) settled at $67.90, down $0.24 or -0.35%.

Figures from the Australian Bureau of Statistics (ABS) out on Wednesday showed its wage price index rose 0.8% in the December quarter from the previous quarter, under forecasts of a 1.0% increase.

Daily AUDUSD Technical Analysis

The main trend is down according to the daily swing chart. A trade through .6812 will signal a resumption of the downtrend. A move through .7029 will change the main trend to up.

The minor trend is also down. A trade through .6921 will change the minor trend to up. This will also shift momentum to the upside.

Potential resistance levels are clustered at .6867, .6894 and .6921. On the downside, the key support area is .6760 and .6715.

Daily AUDUSD Technical Forecast

Trader reaction to the minor pivot at .6867 is likely to determine the direction of the AUDUSD on Wednesday.

Bearish Scenario

A sustained move under .6866 will indicate the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the minor bottom at .6812.

A trade through .6812 will indicate the selling pressure is getting stronger with .6760 – .6715 the next target zone.

Bullish Scenario

A sustained move over .6867 will signal the return of buyers. This could lead to a labored rally with the first target .6894, followed by a resistance cluster at .6921. The latter is a potential trigger point for an acceleration to the upside with .6985 the next target.