Aussie Declines in Asia After Wages Data Weaker Than Perceived

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On Wednesday, the Aussie decline in Asia after wage statistic with investors keeping a sharp eye on the greenback ahead of statements from Fed Chair Janet Yellen this week.

AUD/USD traded at 0.7548, down 0.16%, although USD/JPY adjusted at 108.94, down 0.23%.

In Australia, the 3rd quarter wage price index increase 0.4%, lower than the 0.5% increase seen quarter on quarter and at 1.9% pace year on year,  below the 2.0% increase anticipated.

On Tuesday, the dollar held near an 11-month peak compared to a basket of currencies as some strength returned to the U.S. bond market after a vicious sell-off, helped by unpredictably strong data on U.S. October retail sales.

The U.S. dollar index, which gauges the greenback’s strong point against a trade-weighted basket of six major currencies, was last cited at 100.20.

The U.S. Commerce Department stated retail sales increase 0.8% in October, compared to anticipation for a 0.6% increase.

Furthermore, the Fed of New York said its Empire State manufacturing index increased to 1.50 in November from -6.80 the prior month. Analysts had anticipated to improve to -2.50 this month.

The greenback also remained largely supported during expectations that increased fiscal spending and tax reductions under U.S. President Trump administration will strengthen economic development and inflation.

On Additional News

The U.S. dollar reduces losses and continued to soar near nine month peaks compared to its Canadian counterpart on Tuesday, sustained by the release of positive U.S. economic reports and as an continuing drop in oil prices influenced on demand for the Canadian currency.

“USD/CAD eased off 1.3489, the session low, to hit 1.3527 during early U.S. trade, still down 0.26%.”

The pair was expected to find support at 1.3420, Friday’s low and resistance at 1.3589, Monday’s peak and a nine month high.

The U.S. Commerce Department stated retail sales increased 0.8% in October, compared to anticipations for a 0.6% surge.

Core retail sales, which exclude automobiles sales, surge by 0.8%  the previous month, compared to predictions for an advance of 0.5%.

The Russian ruble is rallying.  The currency increase by 1.4% at 65.2355 per dollar as of 7:42 a.m. ET.

Brent crude oil, the international benchmark, increases by 3.0% at $45.74 per barrel as of 7:43 a.m. ET.

On Tuesday, Russia’s Investigative Committee stated it had apprehended economy minister Alexei Ulyukayev on feeling of taking a $2 million bribe over a massive arrangement involving state controlled oil giant Rosneft.

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