Yahoo Finance Aussie Down In Asia As Central Bank Minutes Note Weak Wage Gains
Investing.com - The Aussie fell in Asia on Tuesday as central bank minutes painted a downbeat picture for wage inflation.
AUD/USD traded at 0.7539, down 0.15%, while USD/JPY changed hands at 112.56, down 0.05%. EUR/USD traded at 1.1738, up 0.04%.
In Australia, RBA meeting minutes showed the central bank is nervously watching labor markets in other major economies, noting scant wage pressures even as full employment has been
reached.
In minutes of its November 7 policy meeting, published Tuesday, the RBA board noted "that in most advanced economies, growth in wages and hourly earnings had been low, despite ongoing reductions in spare capacity."
"They discussed the possibility that globalization and technology were leading wage growth to be less responsive to changes in the demand for labor, which could continue for a while," the minutes said.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.05% to 93.95.
Overnight, the dollar rose sharply against a basket of major currencies on Monday, benefitting from a slump in the euro amid growing political uncertainty in Germany after Chancellor Angela Merkel failed to form a three-way coalition.
Political uncertainty swept across Germany on Monday, weighing on the euro, after talks to form the country's next government collapsed overnight, raising questions about the future leadership position of Angela Merkel.
The slump in the euro pushed the dollar to a nearly one-week high against its rivals but gains were capped by an uptick in sterling amid fading Brexit woes.
GBP/USD rose on reports that the British government was set to make the European Union an improved offer for the final financial divorce settlement.
The reports sparked investor hopes that Brexit proceedings can finally progress onto more pressing issues such as future trading terms as disagreements between the UK and EU on the so-called EU divorce bill was said to be one of the main factors contributing to the recent deadlock in Brexit negotiations.
Related Articles
Forex - Aussie Down In Asia As Central Bank Minutes Note Weak Wage Gains
Forex - PBOC Sets Yuan Parity At 6.356 Against Dollar
Dollar stands tall as German political deadlock pressures euro
