AUD/USD Held Ahead of NFP, Risk-Off Sentiment Limits Recovery
AUD/USD's recovery attempt was limited below 0.6920 on Friday and weakened back to the 0.6900 area ahead of the US Nonfarm Payrolls (NFP) release. The market is likely to hold positions as US employment data is expected to determine the dollar's direction in the short term.
Global sentiment remains defensive as the Iran war shows no signs of ending and the Strait of Hormuz remains closed, maintaining demand for safe-haven assets like the US dollar. The market is also monitoring dynamics at the UN regarding Bahrain's proposal to push for the reopening of the waterway, despite resistance from veto-holding countries, while Iran has warned that "provocative" steps could complicate the situation.
From Australia, the February trade surplus widened to 5,686 million from 2,258 million (revised) in the previous month and exceeded expectations of 2,500 million. This data provides a cushion for the AUD and aligns with the hawkish tone of the RBA minutes, although its impact is tempered by global risk-off.
Today's main focus is the US Non-farm Payrolls (NFP). Consensus estimates a gain of 60,000 jobs after a contraction of 92,000 in February, with the unemployment rate remaining at 4.4%. Trading is also likely to be thinner due to the holiday. (gn)
Source: Newsmaker.id
