AUD/USD: Wage growth too low, interest rates are more likely to rise but not yet: RBA Governor


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 0.29% against the USD and closed at 0.7865.

LME Copper prices declined 0.8% or $48.5/MT to $6416.5/MT. Aluminium prices rose 0.3% or $6.0/MT to $2024.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7850, with the AUD trading 0.19% lower against the USD from yesterday’s close.

Overnight, the Reserve Bank of Australia’s (RBA) Governor, Philip Lowe, stated that the central bank had been prepared to be “patient” on monetary policy and acknowledged low wage growth as one of the key risks to the Australian economy. Further, Lowe indicated that any move in interest rate will likely be gradual and probably to the upside.

The pair is expected to find support at 0.7825, and a fall through could take it to the next support level of 0.7801. The pair is expected to find its first resistance at 0.7888, and a rise through could take it to the next resistance level of 0.7927.

Going forward, the Reserve Bank of Australia’s August meeting minutes, followed by Australia’s unemployment rate data, set to release next week, will be on investors’ radar.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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