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AUD/USD remains near 18-month lows after Aussie wage data release

8/15/2018, 10:31:30 AMMarket Analysis
AUD/USD remains near 18-month lows after Aussie wage data release

AUD/USD is flashing red, having clocked an 18-month low of 0.7222 earlier today.

The AUD failed to pick up a bid even though the Aussie second-quarter wage price index rose 0.6 percent quarter-on-quarter as expected. Further, the annualized number printed at 2.1 percent as expected.

It appears the losses in commodities is not allowing the AUD to cheer the recovery in Turkish Lira. Copper, one of Australia's top exports, fell 1.7 percent on Tuesday and was last reporting a 0.20 percent loss on the day. Meanwhile, gold is also trading on the defensive below $1,200.

Looking forward, the Aussie dollar could extend the decline to levels below 0.72 if the key commodities suffer deeper losses and Turkish lira resumes the slide. Currently, the AUD/USD pair is trading at 0.7232.

AUD/USD Technical Levels

Resistance: 0.7281 (previous day's low), 0.7310 (June 30 low), 0.7350 (5-day moving average)

Support: 0.72 (psychological level), 0.7184 (61.8 percent Fibonacci retracement of 2001 low - 2011 high), 0.7160 (December 2016 low)