- The Australian Dollar maintains a slightly positive tone with bears limited at 0.6590 so far.
- The pair is likely to remain range-bound ahead of the US NFP report.
- The Michigan Consumer Sentiment Index could also have some impact on the pair.
The AUD is trading with moderate gains on Friday, after a significant bounce on Thursday, which has left the pair consolidating above the 0.6600 level ahead of the US employment data.
US data showed a rise in jobless claims, adding to evidence that the US labor market is easing and raising hopes that the Fed could begin cutting rates next March.
US Nonfarm Payrolls Likely to Drive Dollar Volatility
Today’s focus will be on the November Nonfarm Payrolls report, which is expected to show modest improvement late today. After Tuesday’s bearish JOLTs Job Openings reading and Wednesday’s ADP reading, a strong payrolls report would present a headache for the Fed and could cause significant US Dollar volatility.
Somewhat later, the University of Michigan will release the preliminary consumer sentiment index for December, which could also affect the US dollar, especially if it occurs in line with the NFP.
From a technical point of view, Thursday’s bullish engulfing candle on the daily chart gives hope to the bulls, while the support at 0.6590 holds.
Above, 0.6655 and the December high at 0.6590 are the next targets.
To the downside, below 0.6590 the pair could find support at 0.6525 before 0.6520.
Technical levels to monitor
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
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