The Australian Dollar is struggling to maintain traction against the US Dollar, trading only marginally above its 200-day moving average as broad USD strength keeps pressure on the pair. According to BBH FX analysts, Australia’s Q3 wage data—coming in exactly as expected—supports the Reserve Bank of Australia’s decision to pause its rate-hiking cycle.
RBA Steady, AUD Outlook Remains Positive
“AUD/USD is trading soft just above its 200-day moving average due to overall USD strength. Australia’s Q3 wage results support the RBA’s on-hold policy stance,” analysts noted.
The Wage Price Index rose 0.8% quarter-on-quarter, matching both forecasts and the previous quarter’s reading. On an annual basis, wage growth held steady at 3.4% for the second consecutive quarter. The details show public-sector wages accelerating thanks to state government pay increases, while private-sector wage growth eased.
BBH added that overall wage gains are aligned with the RBA’s 2–3% inflation target, given the central bank’s estimate of trend productivity growth near 0.9% in Q4.
Despite near-term USD strength, the analysts maintain a constructive view on AUD/USD, citing a stable RBA policy outlook, the Federal Reserve’s room to ease further, and resilience in global economic activity.
