AUD/USD ignores Aussie wage data & strong Yuan fix, remains weak
AUD/USD remains around the session low of 0.7411 as the political uncertainty continues to overshadow the strong Yuan fix by the PBOC and the uptick in the wage price inflation.
The People’s Bank of China (PBOC) raised Yuan’s fixing by 155 basis points to 6.8635 per USD; its strongest level in 3 months. The Yuan has been boosted for the 5th day in a row. A strong Yuan usually leads to higher Aussie, however, not today, courtesy of the risk-off trading in the markets.
Meanwhile, the Aussie wage price inflation ticked higher to 0.5% q/q as expected from the previous quarter’s print of 0.4%.
Politics could continue to dominate economics/fundamentals ahead in the day. Consequently, the Aussie is likely to track S&P 500 futures and safe haven assets like gold and Yen.
AUD/USD Technical Levels
A break below 0.7403 (5-DMA) would open up downside towards 0.7392 (10-DMA) and 0.7368 (May 5 low). On the other hand, resistance is seen at 0.7432 (session high) ahead of 0.7473 (Apr 12 low) and 0.75 (zero levels).