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,” said Boris Schlossberg, BK Asset Management FX strategy managing director.

“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.

AAP

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