The AUD/USD pair held steady on Wednesday morning after the Australian Bureau of Statistics released the latest wage price index data. It was at 0.6517, staying within a range it has held for the past few months. The AUD/USD exchange remained stable within a narrow range after the ABS released the wage price index, an important metric that the Reserve Bank of Australia closely observes.
The report showed that wages continued to rise in the third quarter of this year, with an increase of 3.4%. The data indicates a possible increase in inflation in the coming months. The report came out just a day after the RBA shared the minutes from its latest monetary policy meeting. The minutes revealed that officials showed restraint concerning inflation, which has persistently stayed above the 2% target for multiple years. The Federal Reserve is preparing to unveil the latest mortgage lending data, providing a glimpse into the number of applicants and the current average mortgage rate. The Commerce Department is about to release the latest trade statistics. Experts expect that the upcoming figures will show a drop in exports from $280 billion to $278 billion, as well as a reduction in imports from $348 billion to $341 billion.
The Federal Reserve is preparing to unveil the minutes from its latest meeting, where officials decided to lower interest rates by 0.25%, adjusting them to a range of 3.75% to 4%. The upcoming minutes will provide an overview of the discussions conducted by officials and indicate possible expectations for future meetings. The upcoming important AUD/USD update will be the US jobs report set to be released on Thursday. The data will show if the economy saw an increase or decrease in jobs during the month. Recently, signs have emerged suggesting a potential softening in the labor market, with numerous companies announcing substantial layoffs. The AUD/USD exchange rate has shown a stable trend over the past few months. On Wednesday, it was priced at 0.6515, in line with the 50-day and 200-day Exponential Moving Averages.
A head-and-shoulders pattern has formed, suggesting a classic bearish reversal signal in technical analysis. The Relative Strength Index and the MACD have demonstrated consistent performance in recent days. As a result, the current outlook for AUD/USD seems to be balanced, with a tendency towards bearish sentiment. A negative perspective is anticipated to push it down to the next major support level at 0.6400. A move past the crucial resistance point at 0.6600 will change the current negative outlook.