FxWirePro: Aussie halts 4-day losing streak on upbeat wage data
Wednesday, February 19, 2020 9:09 AM UTC
- The Australian dollar rebounded from a 1-week low hit in the previous session following the release of the upbeat wage price index.
- Data released earlier in the day showed Australia's annual wage price index rose a tepid 2.2 percent in the fourth quarter of 2019 with pay rewards in the public sector slowing to the weakest pace on record.
- On Tuesday, the major tumbled as low as 0.6673 after the minutes from the Reserve Bank of Australia's first meeting of the year showed policymakers discussed easing policy.
- The RBA has estimated the unemployment rate needs to fall below 4.5 percent from 5.1 percent currently for wages to grow at 3 percent or more.
- The Aussie was trading 0.2 percent up at 0.6698, having hit a low of 0.6773 the day before, its lowest since Feb. 10.
- Technical indicators are turning bullish: Stochs indicate a bullish crossover and MACD supports upside.
- Immediate resistance is located at 0.6729, a break above could take it near 0.6747 (21-EMA).
- On the downside, support is seen at 0.6670, a break below could drag it till 0.6652.