Data from this morning shows a renewed slowdown in wage growth in Japan. Although nominal wages are still up 1.5% year-on-year, this is well below expectations and the previous trend. Adjusted for inflation, i.e., in real terms, wages have fallen again, and more sharply than before.
Gold price (XAU/USD) extends the rally to near $3,990 during the early Asian session on Wednesday. The expectation of a US interest rate cut, geopolitical risks and economic uncertainty provide some support to the precious metal. Traders will keep an eye on the FOMC Minutes later on Wednesday.
The USD/CHF trades at around yearly lows of 0.7980, capped on the downside by the 20-day Simple Moving Average (SMA) of 0.7951 and by the 50-day SMA at 0.8008. At the time of writing, the pair hovers around 0.7980, virtually unchanged.