- Australian wage price index grew soft on QoQ but remained unchanged on YoY.
- Trade tension and China data will be followed for now.
AUD/JPY trades near 76.00 after the quarterly wage price data from Australia added weakness into the Australian Dollar (AUD) on early Wednesday.
The first quarter (Q1) 2019 wage price index remained unchanged on a yearly format at 2.3% but slipped beneath 0.6% forecast to march the 0.5% prior on a QoQ basis.
The pair was previously under pressure as on-going trade tension between the US and China weighed on the Aussie as Beijing is its largest consumer.
Weakness in the risk tone could also be considered as a reason for the quote’s decline. The US 10-year treasury yield dropped nearly one basis point to 2.41% during the initial Asian session.
Traders may now look for China’s retail sales and industrial production data for fresh impulse. However, developments surrounding the Trump-Xi tariff-war won’t lose its importance.
Technical Analysis
January 04 low near 75.20 and 75.00 round-figure should be considered as immediate support, a break of which can recall July 2016 lows near 74.55 and June 2016 bottom around 72.40.
On the contrary, a month-old descending trend-line can keep limiting the quote’s upside near 76.85 with 77.50 and 78.10 being the follow-on levels to watch during the breakout.
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