AUD/USD drops further below 0.7300 as downbeat Aussie data joins risk off mood

• AUD/USD extends the previous day’s losses while refreshing the intraday low below 0.7300.
• Australia’s Wage Price Index marked the lowest increase on record during Q3 2020.
• Risk aversion escalates as virus woes strengthen outside the West, RBA’s Lowe cited Aussie-China tussle.

AUD/USD takes offers around the intraday low of 0.7271, down 0.34% intraday, during the early Wednesday. The pair recently reacted to the disappointing Australian Wage Price Index data for the third quarter (Q3). Also favoring the bears is the latest risk aversion wave amid the coronavirus (COVID-19) resurgence.

Aussie Q3 Wage Price Index dropped below 0.2% market consensus and prior to 0.1% QoQ while marking the all-time lowest increase in the wages. Further, the YoY figures also weaken versus 1.5% expected and 1.8% previous readouts to 1.4% during the stated period.

Earlier in the day, RBA Governor Philip Lowe cited the Aussie-China tussle and the importance to solve the matter as Beijing is the last customer to the Pacific major. The central banker also praised the bond-buying program during the latest comments at a forum discussion.

Read: RBA's Lowe: Australia needs to keep strong trade relationship with China

Risks remain heavy as the alert level in Tokyo is up for hiking to the highest following the recent increase in the coronavirus (COVID-19) numbers. The US state governors are also struggling to tame the pandemic with local measures whereas European Central Bank (ECB) President Christine Lagarde rekindled that the economic challenges will remain present well in 2021.

Elsewhere, the US policymakers struggle to offer the much-awaited covid aid package. Recent update blames Democrats for the stimulus deadlock.

That said, S&P 500 Futures mark 0.35% intraday losses while stocks in Asia-Pacific also register losses below 1.0% by press time.

With the most scheduled data already out, AUD/USD traders will keep eyes on the risk catalysts for immediate direction.

Technical analysis

A clear break below an ascending trend line from November 02, at 0.7294 now, directs AUD/USD sellers toward Friday’s low near 0.7220. On the contrary, 0.7340/45 area, comprising multiple tops since early September, holds the key to fresh upside targeting the August 31 high near 0.7415.