DB are positive on wage growth in Australia, and say these are also a positive for the Australian dollar
we've gained further confidence from two below-the-radar data releases in the past couple of weeks
1. A reduction in labour market slack … in Q3 underemployment has dropped … suggests wage growth should rise to 2¾%, compared to 2% at present
2. A more favourable mix in job creation … . higher-paying industries have been ramping up hiring in the past few quarters
On the AUD:
- The AUD already looks low relative to RBA pricing, and fully pricing a hike could only help.
AUD/USD has slumped this year, better news should see it shift into a sideways trend but keep an eye on USD developments.
