- AUD/USD recovers from multi-week lows.
- The dollar is moving away from two-decade highs and becoming a key support factor.
- Market with its sights set on the US employment report.
The AUD/USD pair attracts some buying on Friday and recoups some of the previous day’s losses from the 0.6770 zone, the lowest level since July 18. The pair continues its intraday rise and breaks above 0.6800 again, reaching a fresh daily high before US data at 0.6813.
The US dollar is lower and off the two-decade highs reached on Thursday, which, in turn, offers some support to the AUD/USD pair. Some weakness in returns of US Treasury bonds keeps the dollar weak. Added to this are the signs of stability in the financial markets.
Rising recession fears, economic headwinds stemming from further COVID-19 lockdowns in China and the war in Ukraine could limit optimism, though on Friday everything appears to initially hinge on US jobs numbers. that will affect the expectations of the monetary policy of the Federal Reserve. There is a probability based on market prices of a 75 basis point hike for the September FOMC meeting.
ANDhe focus is on the US employment report to be released at 12:30 GMT. The consensus is for an increase in non-farm payrolls of 300,000. While next week will be the meeting of the Reserve Bank of Australia (RBA).
Technical levels
Source: Fx Street
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