AUD/USD extends its upside below the mid-0.6400s ahead of the US NFP data

AUD/USD edges higher to 0.6435 on the softer USD, risk appetite.
Reserve Bank of Australia (RBA) is likely to raise the rate by 25 basis points (bps) next week.
Market participants will closely focus on US employment data, including Nonfarm Payrolls.

Lallalit Srijandorn FXStreet

The AUD/USD pair extends its upside during the early European trading hours on Friday. The US dollar and the risk appetite lend support to the pair ahead of the US Nonfarm Payrolls data on Friday. As of press time, the pair is trading around 0.6435, gaining 0.03% on the day.

The markets anticipate the Reserve Bank of Australia (RBA) to raise the cash rate by 25 basis points (bps) next week while holding the hawkish stance. Early Friday, the Australian Retail Sales for the third quarter (Q3) improved by 0.2% QoQ versus from 0.6% drop in the previous reading. Meanwhile, Judo Bank Composite PMI came in at 47.6 in October from the previous reading of 47.3. The Services PMI grew to 47.9 in October from 47.6 in September. The upbeat Australian economic data and risk-on environment boost to Australian Dollar (AUD) against the Greenback.

On the other hand, markets are confident that the Federal Reserve (Fed) is approaching the end of its tightening cycle after Fed Chair Jerome Powell made it clear that financial conditions will need to remain tight to avoid further rate rises. The dovish message following the Federal Open Market Committee (FOMC) policy meeting exerts some pressure on the USD. However, the upward trajectory of US Treasury bond yields will likely continue to dominate the USD performance in the next sessions.

Trader will closely watch the highly-anticipated US Nonfarm Payrolls for fresh impetus. The US economy is expected to add 180K jobs in October. The US Unemployment Rate is estimated to remain steady at 3.8%. The stronger-than-expected data might limit the downside of the USD and act as a headwind for the AUD/USD pair. Traders will take cues from the data and find a trading opportunity around the AUD/USD pair.

AUD/USD

Overview
Today last price	0.6438
Today Daily Change	0.0004
Today Daily Change %	0.06
Today daily open	0.6434

Trends
Daily SMA20	0.6357
Daily SMA50	0.6391
Daily SMA100	0.6519
Daily SMA200	0.6625

Levels
Previous Daily High	0.6456
Previous Daily Low	0.6389
Previous Weekly High	0.64
Previous Weekly Low	0.627
Previous Monthly High	0.6445
Previous Monthly Low	0.627
Daily Fibonacci 38.2%	0.643
Daily Fibonacci 61.8%	0.6415
Daily Pivot Point S1	0.6397
Daily Pivot Point S2	0.636
Daily Pivot Point S3	0.633
Daily Pivot Point R1	0.6464
Daily Pivot Point R2	0.6493
Daily Pivot Point R3	0.653

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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