On Friday, the AUD/USD has struggled to make a convincing recovery.
Above 92.50, the US Dollar Index remains in positive territory.
The focus switches to US Nonfarm Payrolls statistics.
After spending the first four days of the week in negative territory, the AUD/USD pair continued its downward trend on Friday, reaching 0.7449, its lowest level since early December. The pair remains reasonably calm as trading action becomes more subdued ahead of crucial US data releases. It was last seen shedding 0.1 percent on the day at 0.7461.
Home Loans in Australia climbed by 1.9 percent in May, according to data released earlier in the day. Furthermore, Investment Lending for Homes increased to 13.3 percent in April from 2.1 percent. Despite this, market participants mainly ignored these readings.
Market investors will be watching the US Bureau of Labor Statistics’ June jobs report attentively later in the session. Investors anticipate a 700,000 increase in nonfarm payrolls.
Employment has been cited by FOMC members as a crucial factor in assessing asset tapering timing, and a stronger-than-expected NFP reading might help the USD gain ground versus its rivals ahead of the weekend. A dismal NFP report, on the other hand, might cause a pullback in the US Dollar Index (DXY), allowing the AUD/USD to recoup some of its weekly losses.
The DXY is currently trading at 92.62, its highest level in in three months, up 0.1 percent on a daily basis.
NFP Predictions: Here are four reasons why June’s jobs data could be a downer for the currency./n
