Sean Callow, Research Analyst at Westpac, points out that AUD/USD has spent another week inside the ranges that have prevailed since mid-June, not threatening either 0.7300 or 0.7500.
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“The uptick in recent sessions seems to owe a major debt to the recovery in the Chinese yuan, with RBA headlines having no apparent impact.”
“Perhaps the next major move will be in September, with plenty of global event risk then. But there will at least be plenty of local data this week. While the RBA should be braced for another sluggish wages reading around 2%yr, it insists that “the improvement in the economy should see some lift in wages growth over time.”
“For this to occur, we surely need a tighter labour market. The headline unemployment rate is grinding lower but underemployment remains high. Not ideal conditions for a wage breakout.”
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