AUD/USD ignores Aussie wage inflation, trend line support intact

Aussie wage inflation numbers matched estimates, thus AUD/USD pair remains largely unchanged around the pre-data level of 0.7833. 

Rising trend line support is intact

The trend line sloping upwards from the June 2 low and July 7 low is seen offering support around 0.7798 levels. The currency remains bid in Asia on signs the risk sentiment is stabilizing. 

Australia second quarter wage price index came-in as expected at 1.9% y/y and 0.5% q/q. The Aussie 10-yr bond yield has jumped 2.2 basis points in Asia and that seems to have helped the Aussie dollar. 

Ahead in the day, the spot will track the broader market sentiment and shall take cues from the US housing starts and building permits data due at 12:30 GMT. 

AUD/USD Technical Outlook

FXStreet Chief Analyst Valeria Bednarik writes, “Further slides are likely according to technical readings in the 4 hours chart, as the price moved further below its 20 SMA and broke below its 200 EMA for the first time in two months, while technical indicators maintain their bearish slopes near oversold readings. July 18th low at 0.7786 comes as a strong support for this Wednesday, with a break below it opening doors for a steeper decline towards the 0.7650 region during the following sessions.”