Release Explanation: This report measures the quarterly changes in Australian workers wages. Increases in the index may suggest rising pressure from inflation as firms pass higher labor costs on to consumers in the form of higher prices. This release is considered a leading indicator of consumer inflation. When businesses pay higher labor costs, these higher costs are typically passed on to consumers.
Trade Desk Thoughts: The release of the Australian wage price index showed that it rose 1.2 percent this quarter. This is above analysts’ expectations for a 0.9 percent increase. The increase in the trend index for the year through December for all employee jobs was 1.0 percent, while the annual change in the year through December for all employee jobs in Australia was 4.2 percent.
Forex Technical Reaction: The aussie has been stuck in a 30 pip channel since the start of the new day. The pair has not reacted significantly to either release this evening.