AUD/USD is struggling to clear 100-hour SMA despite the uptick in Aussie wage growth

• The AUD/USD is struggling to move past the 100-hour simple moving average (SMA).
• An uptick in the Aussie wage price index seems to have gone unnoticed.
• The currency pair has created a bearish continuation pattern on the hourly chart.

The Aussie dollar is currently trading at 0.7224, having hit a high of 0.7238 earlier today. Notably, the pair is having a tough time scaling the 100-hour SMA lined up at 0.7232.

The ABS data released 30 minutes before press time showed the wage-price inflation ticked higher to 0.6 percent quarter-on-quarter in the September quarter from the previous quarter’s print of 0.5 percent. Meanwhile, the annualized figure rose to 2.3 percent, in line with the expectations.

The uptick in the wage price inflation, however, has gone unnoticed. That makes the pair more vulnerable to risk aversion in the Asian stocks. As of writing, stocks in Australia, New Zealand, and South Korea are flashing red, while Japan’s Nikkei is reporting moderate gains.  

On the hourly chart, the pair seems to have carved out a bear flag –   a bearish continuation pattern. A break below the lower edge of the flag, currently at 0.7205, could yield a drop to 0.7164 (Monday’s low).

AUD/USD Technical Levels