AUD/USD rallies to three-day high as traders brace for US jobs report

AUD/USD finds bids at around 0.6300 and climbs to a new three-day high at around 0.6377 as the New York session progresses after US economic data failed to underpin the Greenback (USD), which remains battered ahead of September’s US employment report. The pair is exchanging hands at 0.6369, gains 0.71%.

Aussie’s Dollar gains traction on overall US Dollar weakness, ahead of US Nonfarm Payrolls

Market sentiment remains subdued as traders brace for the Nonfarm Payrolls report. Analysts expect the US economy to add 170K jobs below August’s 187K, while the Unemployment Rate is expected to stay at 3.7%. Average Hourly Earnings are foreseen at 4.3%, unchanged and aligned with the previous reading.

Meanwhile, earlier in the North American session, Americans filing for unemployment increased by 207K, below forecasts. That would not deter the US Federal Reserve from maintaining rates higher for longer. At the same time, the US Department of Commerce revealed the US deficit narrowed in August.

On the Australian front, Australia’s exports grew by 4% after posting a 2% decline the previous month. Later in the Asian session, the economic docket would feature the Reserve Bank of Australia (RBA) Financial Stability Review.

AUD/USD Price Analysis: Technical outlook

Despite jumping from around yearly lows, the AUD/USD downtrend remains in play unless the major climbs past the latest cycle high seen at 0.6522. If buyers want to reclaim the latter, they must challenge key resistance levels at 0.6400, followed by the 50-day moving average (DMA) at 0.6451. On the flip side, on the path of least resistance, the major first support would be the 0.6300 mark, followed by the year-to-date (YTD) low of 0.6285.