AUD/USD trades with modest gains, upside seems limited ahead of NFP

AUD/USD managed to seek out some support near the 0.7645 region amid oversold conditions.
Thursday’s upbeat US macro releases continued underpinning the USD and capped gains.
The market focus will remain glued to the closely-watched US monthly jobs report (NFP).
The AUD/USD pair traded with a light positive bias through the primary half the ecu session and was last seen hovering near daily tops, round the 0.7665-70 region.

The pair gained some positive traction on the last trading day of the week and has managed to rebound around 25 pips from the 0.7645 region, or rock bottom level since Pan American Day . The uptick lacked any obvious catalyst and will be solely attributed to some short-covering from extremely oversold conditions on hourly charts. That said, any meaningful recovery seems elusive amid a modest US dollar strength.

Thursday’s upbeat US economic releases indicated that the US recovery is gathering pace and fueled speculations that the Fed may bring forward the timeline for tapering its bond purchases. This, along side the prevalent cautious mood, continued acting as a tailwind for the safe-haven greenback. Investors may additionally be reluctant to put any aggressive bets before Friday’s release of the US monthly jobs data.

The US NFP report are going to be one among the foremost important pieces of economic data that might set the tone for the upcoming FOMC meeting later this month. this may play a key role in influencing the near-term USD price dynamics and supply some meaningful impetus to the AUD/USD pair. Hence, it’ll be prudent to attend for a few strong follow-through buying before confirming that the recent downfall has run its course.

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