- AUD / USD is moving sideways below 0.7800 on Friday.
- The US Dollar Index appears to have stabilized below 90.00.
- Nonfarm payrolls in the US are expected to rise just 71,000 in December.
After breaking a two-day winning streak and closing in the red on Thursday, the pair AUD/USD is struggling to make a decisive move in either direction on Friday, as markets remain subdued ahead of key US data. At time of writing, AUD / USD was up 0.2% on the day to 0.7782 .
DXY enters consolidation below 90.00
Following a sharp decline in the first half of the week, the US Dollar Index (DXY) saw a decisive rally supported by rising US Treasury yields. The DXY rose above 90.00 for the first time in a week on Friday, but struggled to preserve its bullish momentum with investors turning their attention to the US Non-Farm Payroll (NFP) report. At the moment, the DXY records small daily gains at 89.89.
The increased prospects for additional government spending in the US as Democrats retained a majority in the Senate after the second round of elections allowed the 10-year Treasury yield to rise more than 10% in the last two days.
Investors expect the NFP to hit 71,000 in December after the November reading of 245-000 and that the Unemployment Rate will rise to 6.8%. A stronger than expected NFP report could boost market sentiment. Although this would likely hurt the dollar as a safe haven, the DXY could gain traction with Treasury yields extending the rally.
Technical levels
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