AUD/USD sits near multi-month peak, just above 0.6800 as traders await US NFP report

AUD/USD gains some positive traction for the fourth straight day amid sustained USD selling.
The Fed’s dovish pivot continues to drag the US bond yields lower and weigh on the greenback.
A softer risk tone seems to act as a headwind for the risk-sensitive Aussie ahead of the NFP report.

Haresh Menghani FXStreet

The AUD/USD pair reverses an intraday dip to sub-0.6800 levels and turns positive for the fourth successive day on Friday. The steady intraday ascent extends through the first half of the European session and lifts spot prices to the 0.6835 region, back closer to the highest level since September 13 touched on Thursday.

The US Dollar selling remains unabated amid rising bets for a less aggressive policy tightening by the Fed, which, in turn, acts as a tailwind for the AUD/USD pair. The dovish-sounding comments by Fed Chair Jerome Powell, along with signs of easing inflationary pressures, reaffirmed expectations that the US central bank will slow the rate-hiking cycle. This is evident from slugging US Treasury bond yields and continues to weigh on the greenback.

Furthermore, hopes of more stimulus from China and the easing of stringent COVID-19 restrictions in the world's second-largest economy offer additional support to the China-proxy Australian Dollar. That said, the cautious market mood could act as a headwind for perceived riskier currencies and keep a lid on any further gains for the AUD/USD pair. Traders also seem reluctant to place aggressive bets ahead of the US monthly employment details.

The popularly known NFP report is due later during the early North American session and will provide fresh insight into the US labour market. This might influence the Fed's policy outlook and drive the USD demand ahead of the next FOMC meeting on December 13-14. Apart from this, the broader market risk sentiment should provide some impetus to the AUD/USD pair. Nevertheless, spot prices seem poised to post gains for the second straight week.

Technical levels to watch

AUD/USD

Overview
Today last price	0.6826
Today Daily Change	0.0013
Today Daily Change %	0.19
Today daily open	0.6813

Trends
Daily SMA20	0.666
Daily SMA50	0.6494
Daily SMA100	0.6688
Daily SMA200	0.6926

Levels
Previous Daily High	0.6845
Previous Daily Low	0.6782
Previous Weekly High	0.6781
Previous Weekly Low	0.6585
Previous Monthly High	0.6801
Previous Monthly Low	0.6272
Daily Fibonacci 38.2%	0.6821
Daily Fibonacci 61.8%	0.6806
Daily Pivot Point S1	0.6781
Daily Pivot Point S2	0.675
Daily Pivot Point S3	0.6718
Daily Pivot Point R1	0.6845
Daily Pivot Point R2	0.6877
Daily Pivot Point R3	0.6908

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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