- Risk appetite and a weak US dollar are driving AUD / USD.
- The US dollar suffers a major setback, ends the week under pressure after the NFP.
The AUD/USD Friday is having the best day in weeks driven by a general decline in the US dollar and also by the recovery of the Australian dollar. The pair is about to end the week above 0.7665, the highest level in a week.
NFP adds to the weakness of the dollar
The lower-than-expected employment data in the US triggered another bearish stretch in the US dollar, completing a reversal. The DXY fell from the highest level since November above 91.50 to a two-day low near 91.00. Not even the rise in US yields limited the decline.
On Friday, the Australian dollar rose across the board for the second day in a row, rebounding further after the slump following the Reserve Bank of Australia meeting. The central bank tone weighed on the AUD / USD which then rebounded sharply, erasing all weekly losses.
“We maintain our view that RBA policy combined with concerns about trade tensions with China will keep AUD / USD limited. We stand by our forecast that a 0.76-0.77 trading range may contain most of the activity in the coming months, ”say Rabobank analysts.