- Upbeat market mood is helping AUD/USD edge higher during American session.
- US Dollar Index clings to modest daily gains above 97.00.
- Unemployment Rate in Australia is expected to rise to 7% in May.
After spending the majority of the day below 0.6900, the AUD/USD pair gained traction during the American session and was last seen gaining 0.4% on the day at 0.6914.
The broad-based USD strength in the early trading hours of the American session weighed on AUD/USD. However, with major equity indexes in the US turning north in the last hour, the greenback lost its strength as a safe haven. As of writing, the US Dollar Index, which touched a daily high of 97.35, is now posting small daily gains at 97.10.
Focus shifts to Australian labour market data
In the early trading hours of the Asian session, the Australian jobs report will be watched closely by the market participants. Investors expect the Unemployment Rate in May to rise to 7% from 6.2% in April.
Previewing the data and its potential impact AUD/USD, “Upbeat numbers will likely boost the pair towards the critical 0.7000 threshold, although gains beyond this last may be short-lived,” said FXStreet Chief Analyst Valeria Bednarik. “A slump on a disappointing outcome could see the pair falling towards 0.6830 first, and to the 0.6770 price zone later, where bulls are expected to take their chances. A bearish extension below this last will be possible if dismal numbers couple with risk-aversion.”
Later in the session, the Reserve Bank of Australia (RBA) will release its Bulletin as well.
Technical levels to watch for
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