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Australia AU WPI (Q/Q) May 19 2021

What does the data mean to the market?

The Wage Price Index measures the change in the price businesses, and the government pay for labour, excluding bonuses. It is a leading indicator of consumer price inflation.
A higher than expected number should be taken as positive/bullish for the AUD, while a lower than expected number should be taken as negative/bearish for the AUD.
Historic deviations and their outcome

February 24 2021 A nice +0.3 deviation created a prolonged and significant move in AUD price action.
Check out the price action here:

I will use forecasts of:
WPI (Q/Q) 0.5
WPI (Y/Y) 1.4

Today's trade plan
The Wage Price Index measures the change in the price businesses and the government pay for labour, excluding bonuses. It is a leading indicator of consumer price inflation.
A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.
I am looking for a 0.3 deviation in either direction from the forecast. If this happens we would expect to see a slow and tradeable move on EURAUD.

Tradable pairs
EURAUD

Hope this helps but please do your own analysis!!
Good luck!!
James Thatcher

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
 
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