- Upbeat Chinese manufacturing PMI helped regain traction on Friday.
- Renewed US-China trade jitters might keep a lid on any strong gains.
- Friday’s key focus will remain on the US monthly jobs report – NFP.
The AUD/USD pair regained some positive traction on the last day of the week, with bulls making a fresh attempt to build on the momentum further beyond the 0.6900 handle.
Following the previous session's intraday pullback from over three-month tops, the pair managed to attract some buying interest during the Asian session on Friday following the release of better-than-expected Chinese manufacturing data. In fact, the Caixin China Manufacturing PMI came in at 51.7 for October as compared to an expected fall to 51.00 from the previous month's reading of 51.4 and provided a modest lift to the China-proxy Australian Dollar.
Trade uncertainty to cap gains ahead of NFP
On the other hand, the US Dollar remained depressed on the back of Wednesday's less hawkish FOMC statement, which further collaborated to the bid tone surrounding the major. However, some renewed US-China trade jitters, wherein Chinese officials talked down the possibility of reaching a comprehensive longer-term deal with the US, might turn out to be one of the key factors capping any strong gains for the major, at least for the time being.
Moreover, investors might also be reluctant to place any aggressive bets heading into Friday's key event risk – the release of the closely watched US monthly jobs report. The headline NFP print is expected to show that the US economy added 89K new jobs in October and the unemployment rate is seen ticking higher to 3.6%. Meanwhile, the key focus will be on average hourly earnings, which might provide some meaningful impetus.
Technical levels to watch
|Today last price||0.6905|
|Today Daily Change||0.0011|
|Today Daily Change %||0.16|
|Today daily open||0.6894|
|Previous Daily High||0.693|
|Previous Daily Low||0.6883|
|Previous Weekly High||0.6884|
|Previous Weekly Low||0.6808|
|Previous Monthly High||0.693|
|Previous Monthly Low||0.667|
|Daily Fibonacci 38.2%||0.6901|
|Daily Fibonacci 61.8%||0.6912|
|Daily Pivot Point S1||0.6875|
|Daily Pivot Point S2||0.6855|
|Daily Pivot Point S3||0.6828|
|Daily Pivot Point R1||0.6922|
|Daily Pivot Point R2||0.6949|
|Daily Pivot Point R3||0.6969|
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