AUD/USD looks to end week above 0.69 supported by broad USD weakness
- Greenback struggled to capitalize on upbeat NFP readings.
- ISM's report showed manufacturing activity continued to contract in October.
- AUD/USD remains on track to post a weekly gain of nearly 100 pips.
The AUD/USD fell to 0.6890 area during the early trading hours of the American session after the Greenback gathered strength on the back of the upbeat labour market data but reversed its direction in the last hour. As of writing, the pair was up 0.35% on a daily basis at 0.6920.
US data drive USD valuation on Friday
Earlier in the day, the US Bureau of Labor Statistics reported that Nonfarm Payrolls (NFP) in the United States increased by 128,000 to beat the market expectation of 89,000. Additionally, the annual wage inflation remained steady at 3% and September NFP reading received an upward revision to 180,000 from 136,000.
Although the initial market reaction lifted the US Dollar Index to a daily high near 97.50, the fact that the Institue for Supply Management's (ISM) Manufacturing Purchasing Managers' Index (PMI) came in at 48.3 in October to show ongoing contraction in the sector's economic activity and fell short of the market expectation of 48.9 forced the index to retrace its rally. As of writing, the index was down 0.15% on a daily basis at 97.20.
With today's upsurge, the AUD/USD pair remains on track to post a weekly gain of nearly 100 pips.
Technical levels to watch for
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.
