Wage Price Index Prices for the first quarter of the year have been announced in Australia. On a quarterly basis the announced rate of 0.8% was lower than the 1.1% the market expected and was also lower than the 0.9% growth the previous quarter had generated. On a yearly basis the index generated a 3.8% growth which was identical to last year’s, but deviated slightly negative from the 4% that was expected. Upon the news announcement the Australian Dollar generated some losses reaching to a near 15pips as they were bearish for the Aussie.
The Wage Price Index released by the measures labor cost inflation and also the tightness of labor markets. The Reserve Bank of Australia looks with significant caution this index when considering interest rates. A high value is usually associated by hawkish currency behavior.