AUD/USD sits near session lows, around 0.7930 ahead of NFP

The AUD/USD pair held weaker through the mid-European session and is currently placed near session lows, around the 0.7920/30 band touched in the past hour.

In absence of any strong USD buying interest, with the key US Dollar Index consolidating around the breakeven levels, repositioning trade ahead of the key event risk seems to be the only factor driving the pair lower.

Today’s release of the keenly watched US monthly jobs report would be the key highlight during early NA session on the last trading day of the week. The headline NFP print would influence Fed rate hike action by the end of this year and would eventually determine the near-term trajectory for higher-yielding currencies - like the Aussie.

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Even from a technical perspective, the pair has been oscillating within a broader trading band over the past four weeks and hence, traders would wait for a decisive break through the range before committing to the next leg of directional move.

Technical levels to watch

Immediate support is pegged near the 0.7900 handle, which if broken decisively could drag the pair even below 0.7870 horizontal level towards testing 50-day SMA support near the 0.7840 region.

On the upside, 0.7950 level remains an immediate hurdle, above which the pair is likely to make a fresh attempt towards conquering the key 0.80 psychological mark.