AUD/USD climbs as Australian wage growth beats expectations
The post AUD/USD climbs as Australian wage growth beats expectations appeared on BitcoinEthereumNews.com. AUD/USD extends gains for a second day, nears the 0.6500 psychological mark. Australian wage growth beats expectations, supporting the AUD even as markets continue to price in an RBA rate cut. Weaker US CPI data drags the DXY below 100.00, pressuring the US Dollar. The Australian Dollar (AUD) strengthened further against the US Dollar (USD) on Wednesday, with the AUD/USD pair rising close to the 0.6500 psychological level, up nearly 2% so far this week, buoyed by a combination of weaker US Consumer Price Index (CPI) data and stronger-than-expected wage growth in Australia. The US Dollar Index (DXY) fell below the 100.00 level after US Consumer Price Index (CPI) data released on Tuesday came in softer than expected, reinforcing expectations that the Federal Reserve (Fed) may consider policy easing later this year. However, for now, the Fed maintains a cautious tone, citing ongoing economic uncertainties. On the domestic front, Australia’s Wage Price Index rose by 3.4% YoY in Q1, up from a 3.2% increase in Q4 2024 and beating market forecasts of 3.2%. On a quarterly basis, wages climbed by 0.9%, accelerating from 0.7% in the previous quarter, also above the forecast of 0.8%. Looking ahead, the Reserve Bank of Australia (RBA) is widely expected to cut interest rates at its May 20 meeting. According to the ASX RBA Rate Tracker, markets are currently pricing in a 54% probability of a 50-basis-point cut to 3.60% from the current 4.10%, reflecting rising confidence in near-term monetary easing by the central bank. This emerging policy divergence between the Fed and the RBA is adding further directional cues to AUD/USD. While the Fed holds steady, the RBA appears to be more inclined toward rate cuts to support growth amid a patchy economic recovery. Such a scenario should benefit the USD and weigh on…
The post AUD/USD climbs as Australian wage growth beats expectations appeared on BitcoinEthereumNews.com.
AUD/USD extends gains for a second day, nears the 0.6500 psychological mark. Australian wage growth beats expectations, supporting the AUD even as markets continue to price in an RBA rate cut. Weaker US CPI data drags the DXY below 100.00, pressuring the US Dollar. The Australian Dollar (AUD) strengthened further against the US Dollar (USD) on Wednesday, with the AUD/USD pair rising close to the 0.6500 psychological level, up nearly 2% so far this week, buoyed by a combination of weaker US Consumer Price Index (CPI) data and stronger-than-expected wage growth in Australia. The US Dollar Index (DXY) fell below the 100.00 level after US Consumer Price Index (CPI) data released on Tuesday came in softer than expected, reinforcing expectations that the Federal Reserve (Fed) may consider policy easing later this year. However, for now, the Fed maintains a cautious tone, citing ongoing economic uncertainties. On the domestic front, Australia’s Wage Price Index rose by 3.4% YoY in Q1, up from a 3.2% increase in Q4 2024 and beating market forecasts of 3.2%. On a quarterly basis, wages climbed by 0.9%, accelerating from 0.7% in the previous quarter, also above the forecast of 0.8%. Looking ahead, the Reserve Bank of Australia (RBA) is widely expected to cut interest rates at its May 20 meeting. According to the ASX RBA Rate Tracker, markets are currently pricing in a 54% probability of a 50-basis-point cut to 3.60% from the current 4.10%, reflecting rising confidence in near-term monetary easing by the central bank. This emerging policy divergence between the Fed and the RBA is adding further directional cues to AUD/USD. While the Fed holds steady, the RBA appears to be more inclined toward rate cuts to support growth amid a patchy economic recovery. Such a scenario should benefit the USD and weigh on…
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