17/11/2016 - 06:28

$A falls on weak wage growth

17/11/2016 - 06:28

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The Australian dollar has fallen below 75 US cents after official data showed that wage growth fell to an all-time low.

$A falls on weak wage growth

The Australian dollar has fallen below 75 US cents after official data showed that wage growth fell to an all-time low.

At 0700 AEDT on Thursday, the local unit was trading at 74.81 US cents, down from 75.45 cents on Wednesday.

The Aussie has been sold-off after the Australian Bureau of Statistics' wage price index rose 0.4 per cent in the September quarter - missing market expectations of a 0.5 per cent rise - and 1.9 per cent on a yearly basis.

"This was the weakest reading on record and suggests that consumer demand may be tempered," BK Asset Management FX strategy managing director Boris Schlossberg said.

"With wages and inflation muted, speculation is starting to heat up that the RBA (Reserve Bank of Australia) may need to ease in the near future causing the Aussie to sell off for most of the night."

He said the US dollar, supported by higher US yields, also continued to strengthen overnight.

CURRENCY SNAPSHOT AT 0700 AEDT ON THURSDAY

One Australian dollar buys:

* 74.81 US cents, from 75.45 cents on Wednesday

* 81.71 Japanese yen, from 82.35 yen

* 70.05 euro cents, from 70.21 euro cents

* 60.13 British pence, from 60.50 British pence

* 105.78 New Zealand cents, from 106.36 NZ cents

BOND SNAPSHOT:

* CGS 5.25 per cent March 2019 1.795pct, unchanged from Wednesday

* CGS 4.25pct April 2026, 2.589pct, down from 2.585pct

Sydney Futures Exchange prices:

* December 2016 10-year bond futures contract at 97.390 (indicating a yield of 2.610 per cent), unchanged from Wednesday.

* December 2016 3-year bond futures contract at 98.210 (1.790 per cent), up from 98.190 (1.810 per cent).

(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)

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