- AUD / USD managed to find some support near the 0.7645 region amid oversold conditions.
- Upbeat US macro statements on Thursday continued to support the USD and limited gains.
- The market focus will remain on the monthly jobs report (NFP) that is closely followed.
The pair AUD/USD it traded with a slight positive bias during the first half of the European session and was last seen near the daily highs, around the 0.7665-70 region.
The pair gained some positive traction on the last trading day of the week and has managed to bounce around 25 pips from the 0.7645 region, or the lowest level since April 14, covering extremely oversold conditions on hourly charts. That said, any significant recovery seems elusive amid a modest strength in the US dollar.
Upbeat US economic releases on Thursday indicated that the US recovery is accelerating and fueled speculation that the Fed could advance the schedule to reduce its bond purchases. This, coupled with the prevailing cautious mood, continued to act as a tailwind for the safe-haven dollar. Investors may also be reluctant to make aggressive bets ahead of the release of the US monthly labor data on Friday.
The US NFP report will be one of the most important economic data that will set the tone for the next FOMC meeting later this month. This will play a key role in influencing the short-term USD price dynamics and will provide a significant boost to the AUD / USD pair. So it will be wise to wait for some solid follow-up purchases before confirming that the recent slump has run its course.
Technical levels
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