Australia Wage Price Index for Q4 2018 arrived at 0.5% q/q vs the expected 0.6%, which is yet another data input that will weigh on the Aussie.
As noted from yesterday's meeting minutes, the RBA Board said that, “Tightening labour market conditions were expected to put upward pressure on wages, although to date wages growth in Australia and elsewhere had been slower to pick up than in previous expansions.”
Analysts at Westpac noted that the annual growth in the wage price index fell from above 4% pre-GFC and above 3.5% in 2011-2012 to just 1.9% in 2016-2017, the slowest wages growth by any measure since at least the early 1960s. It edged back to 2.3%yr in Q3 2018, with Westpac forecasting 0.6%qtr, 2.3%yr in Q4, in line with consensus.
Source : Fxstreet