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  • AUD/USD turned south after closing the previous four days in the positive territory.
  • US Dollar Index fluctuates in a tight range below 94.00.
  • Markets are eagerly waiting for the Nonfarm Payroll report from the US.

The AUD/USD pair rose to its highest level at 0.7211 on Thursday and closed the fourth straight day in the positive territory. With the market mood turning sour on Friday, however, the pair lost its traction and was last seen losing 0.47% on a daily basis at 0.7147.

Following the announced that US President Donald Trump tested positive for coronavirus caused a negative shift in market sentiment on the last day of the week. Reflecting the risk-averse market environment, major European equity indexes are down between 0.9% and 1.1% on the day and the S&P 500 futures are losing 1.6%. 

Focus shifts to US jobs report 

Supported by safe-haven flows, the greenback started to gather strength against its rivals and the US Dollar Index (DXY) climbed to 94.00 area before going into a consolidation phase. At the moment, the DXY is up 0.12% on the day at 93.84.

Later in the day, the US Bureau of Labor Statistics will release its Nonfarm Payrolls (NFP) report. Markets expect the NFP to come in at 850K in September.

Previewing this data, “the dollar is moving on sentiment. In this scenario, an upbeat report could play against the greenback, as stocks will likely advance,” said FXStreet’s Chief Analyst, Valeria Bednarik. “A disappointing number, on the other hand, could have the opposite effect, sending stocks lower and investors into the safe-haven dollar.”

Technical levels to watch for