Deputy Gov. Guy Debelle speaking in Canberra
He adds:
- sees a steady wage growth over next couple of years
- growing evidence at wage rises of 2 to 3% is now the norm in Australia rather than 3 tp 4%
- wage growth entrenched at 2 to 3%, tighter labor market will have to be to force a wage rise
- gradual lift in wages growth would be welcome for workforce economy
- wage growth also need for inflation to reach 2-3% target range
- job growth stronger than expected in recent years but also labor supply
- supply driven by rise in participation rate of females and older workers
- 1 key uncertainty is whether labor supply will continue to expand
The comments slightly dovish comments have led to a modest dip in the AUDUSD to a new day low at 0.6771. The low from yesterday reached 0.67675. That was the lowest level since October 17. The 61.8% retracement of the move up from the October low to the October high comes in at 0.6769.
The recent lows and the 61.8% retracement makes the 0.67675 -69 area a key area on the downside if the sellers are to take even more control in the pair.
Should there be a squeeze higher, a topside trend line comes across at 0.6792 and moving lower.
