Wages In Focus For AUD
Wages In Focus For AUD
The RBA’s relentless aim for higher wages means this week’s Q3 Wage Growth data will be both interesting and important to watch.
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Where to from here for the AUD? There are still a few positive and negatives among the key drivers such as China, commodities, global growth and of course Covid (where both recent case numbers and the vaccination rate has been showing some positive data).
On the policy side though, The RBA wants to see inflation sustainably within the 2-3% target range before hiking the cash rate, and the bank believes the only way they get there is to generate wage growth that is materially higher, aiming for wage growth close to 3%.
At their Nov meeting, the bank said they are expecting wage growth to pick up gradually as the jobs market recovers, with the Wage Price Index forecast to increase by 2.5% over 2022 and 3% over 2023.
So, with the RBA’s relentless aim for higher wages, any significant progress or deterioration in wage growth data will be important as markets will use it to gauge whether there is a chance for a 2022 lift off or whether 2023 looks more likely.
As always, we have more on this and how we look to potentially take advantage of it in our week ahead video.
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If you find these weekly analysis and trade ideas useful, you’ll love Financial Source. There’s a link below where you can learn more about it.
https://financialsource.co
The RBA’s relentless aim for higher wages means this week’s Q3 Wage Growth data will be both interesting and important to watch.
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://financialsource.co
-----
Where to from here for the AUD? There are still a few positive and negatives among the key drivers such as China, commodities, global growth and of course Covid (where both recent case numbers and the vaccination rate has been showing some positive data).
On the policy side though, The RBA wants to see inflation sustainably within the 2-3% target range before hiking the cash rate, and the bank believes the only way they get there is to generate wage growth that is materially higher, aiming for wage growth close to 3%.
At their Nov meeting, the bank said they are expecting wage growth to pick up gradually as the jobs market recovers, with the Wage Price Index forecast to increase by 2.5% over 2022 and 3% over 2023.
So, with the RBA’s relentless aim for higher wages, any significant progress or deterioration in wage growth data will be important as markets will use it to gauge whether there is a chance for a 2022 lift off or whether 2023 looks more likely.
As always, we have more on this and how we look to potentially take advantage of it in our week ahead video.
-----
If you find these weekly analysis and trade ideas useful, you’ll love Financial Source. There’s a link below where you can learn more about it.
https://financialsource.co
