Topic: Australia AU WPI (Q/Q) May 19 2021
What does the data mean to the market?
The Wage Price Index measures the change in the price businesses, and the government pay for labour, excluding bonuses. It is a leading indicator of consumer price inflation.
A higher than expected number should be taken as positive/bullish for the AUD, while a lower than expected number should be taken as negative/bearish for the AUD.
Historic deviations and their outcome
February 24 2021 A nice +0.3 deviation created a prolonged and significant move in AUD price action.
Check out the price action here:
I will use forecasts of:
WPI (Q/Q) 0.5
WPI (Y/Y) 1.4
Today's trade plan
The Wage Price Index measures the change in the price businesses and the government pay for labour, excluding bonuses. It is a leading indicator of consumer price inflation.
A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.
I am looking for a 0.3 deviation in either direction from the forecast. If this happens we would expect to see a slow and tradeable move on EURAUD.
Hope this helps but please do your own analysis!!
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