AUD/USD has printed fresh lows since 6 October, around 0.7250. While economists at Westpac expect the pair to drop to the 0.7220 in the near-term, this would be view as an opportunity to buy as they forecast the aussie around 0.75 by the end of the year.

Australia private wages growth picks up from historical lows 

“The aussie is likely to remain constrained by the RBA’s insistence that 2022 hikes are implausible. Governor Lowe’s arguments were backed by this week’s key data – wages growth has risen from 50+ year lows but is well short of the 3% handle that is consistent with sustainably on-target inflation.”

“Commodity price support is a little shaky near-term, with China steel production plunging and a risk that iron ore extends its four-month slide.”

“Near-term scope for a test of 0.7220 but this could be appealing for longs eyeing recovery to 0.75+ into year-end as Australia’s domestic recovery roars.”