AUD/USD clings to modest gains on positive trade headlines, NFP in focus
|- AUD/USD remains confined well within a multi-day-old broader trading range.
- China said to start implementing tariff waivers for some imports from the US.
- The upside is likely to remain limited ahead of the US monthly jobs report.
The AUD/USD pair regained some positive traction on Friday and has now managed to recover a major part of the previous session’s intraday slide.
The pair continued attracting some dip-buying ahead of the 100-day SMA support and caught some fresh bids during the Asian session on Friday, albeit remained well within a four-day-old trading range amid mixed trade signals.
Subdued USD demand supportive ahead of NFP
China reiterated its expectations that tariffs should be lifted as part of a phase-one deal. This comes on the back of a report on Wednesday that both sides are moving closer to a trade deal before the December 15 tariffs deadline.
On the other hand, the US President Donald Trump on Wednesday said that talks with China were going very well, a complete turnaround from the previous statement that a deal may not come until after the 2020 US presidential election.
Nevertheless, conflicting trade-related headlines kept the US dollar bulls on the defensive, which eventually seemed to be one of the key factors lending some support and helping limit any meaningful downside for the major, at least for now.
In the latest development, China was reported to start implementing tariff waivers for some purchases of Soybeans and pork from the US and remained supportive of a mildly positive tone surrounding the China-proxy Australian dollar.
The uptick, however, lacked any strong bullish conviction and is likely to remain limited ahead of the release of the closely-watched US monthly jobs report, NFP, scheduled later during the early North-American session.
Technical levels to watch
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