Aussie drops after wages data

The Australian dollar fell against most major rivals on Wednesday following labor data.

Australian wages rose 0.9% in the first quarter of the year, above estimates of 0.8%.

On trading, the AUD/USD pair rose 0.7% as of 20:56 GMT to 0.6428.

Loonie

The Canadian dollar fell 0.3% against the greenback as of 20:56 GMT to $0.7155.

The US Dollar

The dollar index was little changed at 101.01 as of 19:43 GMT, with a session-high at 101.08, and a low at 100.2.

Fed Deputy Governor Philip Jefferson said that latest inflation data shows progress towards achieving the 2% inflation target.

However, he believes the outlook has become unclear due to the latest tariffs and their potential impact on prices.

Jefferson said he supported the decision to maintain rates unchanged at the Fed’s last meeting, for it remains “moderately restrictive” and suitable for future economic developments.

Jefferson continues to consider the labor market as strong, with first quarter GDP contraction reflecting distorted data due to higher imports.

Otherwise, the Washington Post reported that Russia and Ukraine will hold their first high-level talks since 2022 in Istanbul, under mounting western pressure to agree on a 30-day ceasefire as a step towards peace.

US State Secretary Marco Rubio is scheduled to join the talks to bolster the chances of a deal, while Ukrainian President Zelensky called for a summit meeting with Russian President Vladimir Putin.

Positive results from the talks would bolster investor confidence and risk appetite in the markets.