On Friday, June 4, the AUD/USD traded 0.35% low at 0.77. The US Nonfarm Payroll (NFP) is causing fears among investors.
The pair mostly fell since mid-May following strong US data and the Federal Reserve’s actions in amplifying the tapering woes.
Recently, one of the reasons for the downfall of the currency is the plunging of Australian housing data.
Aussie Home Loans plummeted 0.6% against the former climb of 3.3%. Meanwhile, the Investment Lending for Homes retreated to a 2.1% increase in comparison to the previous rally of 12.7%.
In addition, the receding COVID-19 cases in Victoria together with a fear of a virus strain joined the Australian fiscal relief.
This exerted downside pressure on the prices of AUD/USD trade prices during the quiet session.
Meanwhile, the April Retail Sales’ second reading was at 1.1%, which confirms the initial reading.
Australia’s trade surplus was expanded to AUD8.20 billion in April which sharply spiked from AUD5.8 billion.
As expected, the trade position saw an improvement as exports grew while imports were slightly lower.
Exports smashed 3.0% as the economy resumed. Analysts noted that the domestic demand should expand.
This week’s highlight is the US Nonfarm Payroll for May to be released on Friday at 12:30 GMT.
The market has a cautious mood ahead of the NFP release together with increasing odds on the Fed’s tapering.
This is backed by robust early signs and recent trimming support gauges used throughout the pandemic which also weighs on the AUD/USD.
If the NFP is within the forecasts, traders might see a blow-up in the forex markets on Friday.
However, given the lack of major catalysts, the Aussie-USD trade may remain sidelined.
USD Progressed
Meanwhile, the USD rose on Friday where it reached multi-week highs following a series of strong economic data ahead of the NFP release.
The US dollar has been in a great deal of strain for much of 2021 as traders have reacted to ultra-easy Fed policies.
Since it suggests that these pressures on the greenback would remain in place for some time.
However, this statement is starting to overturn as the US economic rebound became robust. This in turn, threw a probability of it driving policy tightening.
The dollar index which trails the North American currency against its six other rivals advanced 0.1% at 90.605, reaching a new three-week high.
On the other hand, the EUR/USD traded low by 0.1% at 1.2113 reaching a three-week low.
This was followed by the falling USD/JPY trade at 110.26, as well as the GBP/USD which also fluctuated by 0.1% at 1.4095.
This is sharply under the Kingdom’s currency status of a three-year high at 1.4250.
