Dented By In Line Wage Price Data

AUD under some modest pressure as Australian Q3 wage price data fails to provide any upside surprise, meeting broader expectations (+0.6% Q/Q & +2.2% Y/Y). The weakness on the back of the in-line print is likely being facilitated by the aggressive market positioning when it comes to the RBA hiking cycle (when compared to the Bank's own forward guidance). A reminder that the RBA has continually pointed to the likelihood that wages will need to rise by at 3+% Y/Y to foster the inflationary outcome that it desires. AUD/USD last dealing 15 or so pips softer on the day at $0.7285. Short-term support is located at the Nov 12 low (A$0.7277). A break below there would expose a Fibonacci retracement ($0.7261). Firm support lies just below there, in the form of the base of a bull channel drawn from the Aug 20 low. The recent move lower is considered corrective, but a channel breakout would alter the picture. Bulls need to reclaim the Nov 9 high ($0.7432) to ease bearish pressure.