• AUD/USD eased slightly on Wednesday after data showed Australia wages growth slowed in Q1.
• Australian wages rose at a moderate pace in the first quarter as annual growth in the private sector slowed to the lowest in almost four years, data showed on Wednesday.
• Australia’s wage price index rose 0.8% in Q1, matching forecasts and unchanged from Q4, while annual wage growth eased to 3.3% from 3.4%, signalling moderating wage pressures.
• Markets are focused on the upcoming U.S.-China meeting in Beijing, with trade, technology, AI, and business ties in focus. Any easing in tensions could support the Australian dollar due to Australia’s strong trade links with China.
• Meanwhile, Australia’s 2026/27 budget forecast slightly smaller deficits, proposed major housing tax changes, and largely left inflation control to the Reserve Bank of Australia.
• Immediate resistance is located at 0.7279 (Higher BB), any close above will push the pair towards 0.7312(Higher BB).
• Support is seen at 0.7189(SMA 20) and break below could take the pair towards 0.7088(38.2%fib).
Recommendation: Good to buy around 0.7200 with stop loss of 0.7120 and target price of 0.7280
