The AUD/USD currency pair trended lower in early hrs of Wednesday Morning following the announcement of the dovish .5% increment in Wage Cost Index (WPI). Economic analysts had predicted an increment of .6% for that March 2018 quarter. The annualized WPI came inline with analyst expectations growing by 2.1%.
Following a news, the AUD/USD currency pair nosedived 20 basis suggests trade at approximately .7455 from Tuesday’s close of .7475. Nevertheless, the happy couple rapidly rebounded to go back to the prior level. It's since gone above .7500 and it is within touching distance of .7550.
The Aussie’s rejection of the trip further south may have surprised many traders as expectations were high for that pair hitting a minimum of .7400 before rebounding. However, as shown around the 4-hourly chart below, the AUD/USD currency pair rejected this move rapidly bouncing to complement towards .7500 and today, expectations are high for any continuation of the rebound.
The Aussie is presently exchanging at approximately .7520, quite impressive thinking about the amount it opened up only at that week and also the news about Wage Cost Index. Experts say, traders are ignoring Australian macro data and rather searching in the Chinese data.
Australia depends on China for exports and good figures in the Asian giant’s productivity indicate a better future for Australia. As a result, the Australian Dollar does every so often rely on china figures to locate strength and this may be what's presently happening within the Aussie market Forex Bonus Review
In April, China’s economy maintained a stable development of 6.9% largely supported by greater-than expected industrial output. The task market also continued to be steady recently using the unemployment rate falling by .2% from March to around 4.7% in 31 major metropolitan areas. This really is again an indication that productivity in China continuously improve in the future.