• Struggles to build on overnight attempted rebound amid a modest USD uptick.
• Renewed worries about the US-China relations continue to weigh on the Aussie.
• Today’s key focus will remain on the keenly watched US monthly jobs report.
The AUD/USD pair struggled to build on overnight attempted recovery from over three-week tops and traded with a negative bias for the fourth consecutive session.
Thursday’s disappointing release of the ADP report on the US private sector employment triggered a modest US Dollar retracement and helped the pair to recover a part of its early slide to sub-0.7200 level, touched in the reaction of fresh worries about the US-China relations.
The greenback was further pressured by concerns about an inversion in part of the US Treasury bond yield curve, which is seen as an early warning sign for a potential recession, and fading safe-haven demand amid a goodish rebound in the US equity markets.
The uptick, however, lacked any follow-through during the Asian session on Friday and remained capped on the back of a mildly positive tone surrounding the buck, this time supported by a goodish pickup in the US Treasury bond yields.
Despite the prevalent bearish bias, the pair has managed to hold its neck above the 0.7200 handle as investors now seemed reluctant to place any aggressive bets ahead of today’s important release – the keenly watched US monthly jobs report, popularly known as NFP.
Technical levels to watch
Bulls might continue to try and defend the 0.7200 handle, below which the pair is likely to accelerate the fall back towards the 0.7170-65 support area. On the flip side, recovery beyond the 0.7235-40 region could get extended towards the 0.7265-70 region, above which the pair is likely to aim towards reclaiming the 0.7300 mark.