Australian Dollar continues losing streak after weaker Q3 Wage Price Index data

The Australian Dollar depreciates following the Wage Price Index data released on Wednesday.

Australia's Wage Price Index increased by 3.5% YoY in Q3, down from a 4.1% rise in Q2.

The US Consumer Price Index data release will be eyed in the North American session.

The Australian Dollar (AUD) extends its losses against the US Dollar (USD) for the fourth successive day on Wednesday. The AUD/USD pair remains subdued after the release of the weaker-than-expected Australia’s Wage Price Index data. Additionally, the downward movement of the pair is bolstered by the optimism around the Trump trades.

The Reserve Bank of Australia (RBA) Governor Michele Bullock reaffirmed a hawkish stance after the interest rate hold last week, emphasizing the need for restrictive monetary policy amid ongoing inflation risks and a strong labor market. The hawkish sentiment surrounding the RBA might have restrained the downside of the Australian Dollar.

The US Dollar strengthened as analysts noted that if Trump’s fiscal policies are enacted, they could increase investment, spending, and labor demand, potentially heightening inflation risks. This scenario might lead the Federal Reserve (Fed) to consider a more restrictive monetary policy stance.

Traders are now focused on the upcoming US inflation data release on Wednesday for further guidance on future US policy. The headline Consumer Price Index (CPI) is expected to show a 2.6% year-over-year increase for October, with the core CPI anticipated to rise by 3.3%.