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  • AUD/USD tested 0.7800 in the early American session on Friday.
  • US Dollar Index stays near 90.00 after the NFP report.
  • AUD/USD remains on track to close the week in the positive territory.

The AUD/USD pair climbed to 0.7800 area in the early American session after as the greenback lost its strength following the disappointing labour market data from the US. However, the pair failed to preserve its bullish momentum and was last seen trading flat on the day a little below 0.7770. On a weekly basis, the pair remains on track to close in the positive territory for the 10th consecutive time.

US T-bond yields push higher after US jobs report

Earlier in the day, the US Bureau of Labor Statistics reported that Nonfarm Payrolls (NFP) in the US declined by 140,000 in December. This reading fell short of the market expectation of +71,000 and caused the greenback to weaken against its rivals as investors saw the dismal jobs report as a factor that would allow the Fed to preserve its dovish policy.

The US Dollar Index (DXY) dropped to a daily low of 89.66 after the NFP report but staged a modest rebound later in the session. A 3% increase witnessed in the 10-year US T-bond yield supported the USD and the DXY is currently posting modest daily gains at 89.97.

There won’t be any other macroeconomic data releases in the remainder of the day and the US T-bond yields are likely to continue to impact the USD’s market valuation ahead of the weekend.

Technical levels to watch for