The Asian market session was peppered with high-impact data from Australia which saw wage growth in the country record its biggest increase as pressure in a tight labor market began to be felt.
A tight labor market occurs when there are many job vacancies, but the number of available workers is limited.
Figures released by the Australian Bureau of Statistics (ABS) this morning showed the wage price index rose 1.0% in the third quarter from the previous quarter, and was better than expectations for a 0.9% increase.
Annual wages reportedly increased to 3.1% from 2.6%, the fastest pace since the first quarter of 2013.
However, this figure is still far below the consumer price growth (CPI) of 7.3%.
Following the data, the Aussie dollar failed to react by trading little changed in anticipation of other uncertainties affecting the market.
The Reserve Bank of Australia (RBA) has taken an aggressive step in tightening its policy to fight inflation by raising rates by 275 basis points since May.
The central bank has so far been said to be content with current wage rises, saying growth is well below the 5% rate compared to the more dire situation in the US and UK.
Even so, the RBA remains cautious as high inflation can turn into a 'wage-price spiral'* if wage demands rise too quickly.
*Increased wages increase demand for goods thus causing prices to soar. But, when prices rise, it will push for higher wages, eventually creating a spiral in wages and inflation.
