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  • Traders await US open, jobs report, second-tier Aussie data for fresh clues.
  • Lack of momentum, soft statistics at home and pessimism surrounding the future steps from global central banks dragged the AUD/USD from a 2-month high.

Caution prevails at the global markets as investors await the return of the US traders from the Independence Day holiday whereas second-tier Aussie data, uncertainty surrounding the US-China trade truce and the US employment report together forms a key day to observe going forward.

As a result, the AUD/USD pair holds tightly to 0.7023 figure on early Friday in Asia after it failed to sustain an uptick beyond May month top.

Sluggish data from Eurozone and absence of positive news on the trade despite a recent truce between the US and China kept a lid on market sentiment.

Given the US markets’ off, the European bonds were in the spotlight where Germany’s 10-year bund yields slipped to the European Central Bank’s (ECB) deposit rate for the first time in history.

Looking forward, Australia’s June month AiG Performance of Construction Index will be the first catalyst to follow while trade headlines and the US job numbers for the previous month will be on the trader’s radar then after.

The Aussie data has been on a back foot for the last two months as it flashed 40.4 figure during May. Further, the US Nonfarm Payrolls (NFP) is expected to increase to 160K from 75K prior whereas the Average Hourly Earnings could rise 3.2% from 3.1% on a YoY basis. Also, no change is expected to take place in a 3.6% unemployment rate.

At the trade front, the US side news/views for China continues to flash mixed signal concerning the success of the next week’s trade discussion between the diplomats of the world’s two largest economies.

Technical Analysis

May month top around 0.7050 and April-end high near 0.7070 hold the keys for the pair’s further run-up to 200-day exponential moving average (EMA) level of 0.7112 until then bears may aim for 0.7000 round-figure and the current month bottom close to 0.6955.