• AUD/USD witnesses some selling on Friday and snaps a two-day winning streak.
  • The emergence of some USD selling exerts some downward pressure on the pair.
  • Recession fears, geopolitical tensions further weigh on the risk-sensitive aussie.
  • The downside seems cushioned as the focus remains glued to the US NFP report.

The AUD/USD pair edges lower on Friday, struggling to capitalize on its two-day-old recovery move from its lowest level since July 25. The pair remains on the defensive through the first half of the European session and is currently placed near the daily low, around the 0.6950-0.6945 region.

The US dollar regains some positive traction on the last day of the week, which turns out to be a key factor exerting downward pressure on the AUD/USD pair. This occurs against the backdrop of growing recession fears and heightened geopolitical tensions after US House Speaker Nancy Pelosi's Taiwan visit, which are offering some support to the safe-haven greenback.

In fact, China on Thursday said that it conducted “precision missile strikes” in the Taiwan Strait as part of military exercises. The five missiles fired by China landed within Japan's exclusive economic zone and raise tensions in the region. Furthermore, China said that it will sanction Pelosi and bar her from entering the country.

Apart from this, an uptick in the US Treasury bond yields offers additional support to the buck amid some repositioning trade ahead of the key data risk. The closely-watched US monthly jobs report - popularly known as NFP - is scheduled for release later during the early North American session and should influence the USD price dynamics.

Against the backdrop of more hawkish remarks by several Fed officials this week, stronger US data would revive bets for a large rate hike move at the September FOMC meeting. This would be enough to boost the USD. Conversely, any disappointment will further fuel recession fears and act as a tailwind for the safe-haven buck. This, in turn, suggests that the path of least resistance for the AUD/USD pair is to the downside.

Technical levels to watch


Today last price 0.6958
Today Daily Change -0.0012
Today Daily Change % -0.17
Today daily open 0.697
Daily SMA20 0.6892
Daily SMA50 0.696
Daily SMA100 0.7111
Daily SMA200 0.7164
Previous Daily High 0.6991
Previous Daily Low 0.6934
Previous Weekly High 0.7033
Previous Weekly Low 0.6879
Previous Monthly High 0.7033
Previous Monthly Low 0.668
Daily Fibonacci 38.2% 0.6969
Daily Fibonacci 61.8% 0.6956
Daily Pivot Point S1 0.6939
Daily Pivot Point S2 0.6909
Daily Pivot Point S3 0.6883
Daily Pivot Point R1 0.6996
Daily Pivot Point R2 0.7022
Daily Pivot Point R3 0.7052



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