AUD/USD gains traction above the mid-0.6300s amid the USD softness.
US weekly Initial Jobless Claims for the week ending on September 30 improved to 207K vs. 205K, below expected.
Australia’s Trade Balance improved in August, beating the market expectations.
Traders await the US Nonfarm Payrolls due later on Friday.
The AUD/USD pair extends its upside for two straight days during the early Asian trading hours on Friday. The upside of the pair is bolstered by the correction of the US Dollar (USD) and a decline in US Treasury yields. Market players await the US employment report for fresh impetus. The pair currently trade around 0.6371, gaining 0.03% on the day.
Meanwhile, the US Dollar Index (DXY) declined to 106.30 after retreating from monthly highs. US Treasury yields also edge lower, with the 10-year Treasury yield dropping to 4.71%.
Data from the US Department of Labor on Thursday revealed that US Initial Jobless Claims for the week ending on September 30 improved to 207K from the previous reading of 205K, below the market expectation of 210K. This figure indicates that labor market conditions remain tight. Furthermore, the US Balance of Trade deficit was $58.3 billion, lower than the expected of $62.3 billion and the $64.7 billion recorded in July.
The US employment data on Friday will be in the spotlight. The Nonfarm Payrolls are expected to rise by 170K while the Unemployment Rate is estimated to decline to 3.7% from 3.8%. The softer figures could trigger a sell-off in the Greenback against its rivals and a rally in Treasury yields.
On the other hand, Australia’s Bureau of Statistics reported on Thursday that the nation’s Trade Balance for August expanded to 9,640 million MoM from July’s reading of 8,039 million, beating the market expectations of 8,725 million. The upbeat Australian data lifted the Aussie and acted as a tailwind for the AUD/USD pair.
Following the Reserve Bank of Australia (RBA) October’s meeting on Tuesday, the central bank decided to maintain the status quo, leaving the key interest rate unchanged at 4.10%. The RBA may hike additional interest rates, with expectations pointing to a peak of 4.35% by the end of the year as the inflation remains above the target.
Looking ahead, the Reserve Bank of Australia (RBA) will publish the Financial Stability Review, which is unlikely to surprise the market. The highlight will be the US Nonfarm Payrolls and the Unemployment Rate due later in the American session on Friday. Traders will take cues from the figures and find trading opportunities around the AUD/USD pair.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/aud-usd-extends-its-upside-near-06370-eyes-on-the-us-nfp-202310052300