AUD/USD drops toward 0.7350 on NFP-inspired USD strength

AUD/USD came under renewed bearish pressure on Friday.
US Dollar Index is pushing higher toward 93.00.
Nonfarm Payrolls in the US rose more than expected in July.

Eren Sengezer FXStreet

After spending the majority of the day moving sideways a little below 0.7400, the AUD/USD pair turned south and was last seen losing 0.63% on a daily basis at 0.7357.

USD gathers strength as US labour market continues to improve

The renewed USD strength is weighing heavily on AUD/USD in the second half of the day. The data published by the US Bureau of Labor Statistics showed on Friday that Nonfarm Payrolls in the US surged by 943,000 in July, beating the market expectation for an increase of 870,000. Additionally, the Unemployment Rate declined to 5.4% from 5.9% in June.

Commenting on the data, "with these figures, has the US economy made "substantial further progress? That is the term the all-powerful Federal Reserve set for withdrawing stimulus," noted FXStreet analyst Yohay Elam. "The answer seems to be positive."

Reflecting the positive impact of the strong jobs report on the greenback's performance against its rivals, the US Dollar Index is trading at its highest level since July 27 at 92.76, rising 0.55% on a daily basis.

In the meantime, the benchmark 10-year US Treasury bond yield is up nearly 5% on a daily basis, providing an additional boost to the USD ahead of the weekend.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.7361
Today Daily Change	-0.0043
Today Daily Change %	-0.58
Today daily open	0.7404

Trends
Daily SMA20	0.7395
Daily SMA50	0.7527
Daily SMA100	0.762
Daily SMA200	0.7605

Levels
Previous Daily High	0.7417
Previous Daily Low	0.7376
Previous Weekly High	0.7415
Previous Weekly Low	0.7317
Previous Monthly High	0.7599
Previous Monthly Low	0.7288
Daily Fibonacci 38.2%	0.7401
Daily Fibonacci 61.8%	0.7391
Daily Pivot Point S1	0.7381
Daily Pivot Point S2	0.7357
Daily Pivot Point S3	0.7339
Daily Pivot Point R1	0.7422
Daily Pivot Point R2	0.744
Daily Pivot Point R3	0.7464

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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