AUD/USD builds on weekly gains, climbs above 0.6850 on USD weakness
- USD weakens after NFP comes in below market expectations.
- WH adviser Kudlow says this week's talks with China went well.
- AUD/USD remains on track to gain more than 100 pips for the week.
The AUD/USD pair, which closed the previous trading days in the positive territory, pushed higher on Friday after China's central bank announced a 0.5% cut to the reserve requirement ratio (RRR) to jump-start the economy with more stimulus. In the second half of the day, the Greenback came under renewed selling pressure following the labour market data and allowed the pair to extend its rally. As of writing, the pair was up 0.53% on a daily basis at 0.6851.
USD weakens ahead of Powell speech
The US Bureau of Labor Statistics announced that nonfarm payrolls in August increased by 130,000 in August compared to analysts' estimate of 158,000. Although underlying details of the publication revealed that the wage inflation, as measured by the average hourly earnings, rose more than expected, the USD struggled to preserve its recovery momentum. As of writing, the US Dollar Index was down 0.12% on the day at 98.27.
Later in the session, FOMC Chairman Powell will be delivering his remarks on the economy and the monetary policy outlook at an event in Switzerland.
Meanwhile, White House economic adviser Kudlow sounded fairly optimistic about the US-China trade dispute and said that this week's phone call went well and added that there were no conditions for October trade talks in Washington to allow the trade-sensitive antipodeans to cling to their gains against their rivals.
Technical levels to watch for