- Latest headlines surrounding the trade war help the AUD preserve its strength.
- US Dollar Index fails to recover above 99 after mixed labour market data.
- The unemployment rate in the United States (US) fell to its lowest level in nearly 50 years.
The AUD/USD pair extended its daily recovery during the American trading hours as the mixed employment data from the United States made it difficult for the Greenback to find demand. As of writing, the pair, which touched a daily high of 0.6770 in the last hour, was up 0.25% on the day at 0.6760.
The closely-watched report published by the United States (US) Bureau of Labor Statistics on Friday revealed that nonfarm payrolls (NFP) in September increased by 136,000 and fell short of the market expectation of 145,000. Furthermore, the annual wage inflation fell to 2.9% from 3.2% in August.
On a positive note, however, the unemployment rate dropped to its lowest level in nearly 50 years at 3.5% and August NFP reading got revised to 168,000 from 130,000 to offset the negative impact of the figures mentioned above on the Greenback.
The US Dollar Index recovered to 99 area with the initial reaction to the data but failed to preserve its recovery momentum and was last down 0.07% on the day at 98.84.
Attention shifts to US-China trade negotiations
On the other hand, the latest headlines surrounding the US-China trade conflict providing additional support fo the AUD. During an interview with Fox Business Network on Friday, White House economic adviser Larry Kudlow said that there could be some positive surprises coming out of next week’s trade negotiations in Washington.
With today’s rebound, the pair has moved into the positive territory on the weekly chart as well, erasing all the losses it suffered earlier in the week after the Reserve Bank of Australia (RBA) announced a 25 basis point cut to its policy rates and adopted a dovish tone regarding the policy outlook.
Technical levels to consider
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