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- Australia Q2 Wage Price Index eases to 0.8% QoQ, 3.6% YoY, AUD/USD drops 25 pips
Australia Q2 Wage Price Index eases to 0.8% QoQ, 3.6% YoY, AUD/USD drops 25 pips
Early Tuesday in Asia, the Australian Bureau of Statistics (ABS) unveils the second quarter (Q2) Wage Price Index for the Pacific major on a quarterly (QoQ), as well as a yearly (YoY) basis.
The details of the wage increase, per the ABS, suggest that the headline Wage Price Index grew 0.8% QoQ versus 0.9% expected and 0.8% prior.
Further, the Aussie Wage Price Index grew 3.6% YoY versus the market’s forecast of witnessing an unchanged 3.7% figure for the said period.
Also read: RBA Minutes: Need for further hike would depend on data, evolving assessment of risks
AUD/USD drops 25 pips
Following the downbeat Aussie wage growth, AUD/USD dropped 25 pips to reverse the early-day rebound and refresh the intraday low near 0.6465, down 0.20% near 0.6473 at the latest.
About Australia Wage Price Index
The Wage Price Index released by the Australian Bureau of Statistics is an indicator of labor cost inflation and of the tightness of labor markets. The Reserve Bank of Australia pays close attention to it when setting interest rates. A high reading is positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).
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