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The Australian Dollar maintains a mild positive tone with bears capped at 0.6590 so far.
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The pair is likely to remain in range ahead of the US NFP report.
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The Michigan Consumer Sentiment Index might also have some impact on the pair.
The Aussie is trading with moderate gains on Friday, following a significant rebound on Thursday, which has left the pair consolidating above the 0.6600 level ahead of US employment data.
Data from the US showed an increase in US Jobless claims, adding to evidence that the US labor market is loosening and increasing hopes that the Fed might start cutting rates next March.
US Nonfarm Payrrolls likely to boost USD volatility
The main focus today is on the November nonfarm payrolls report, which is expected to show a moderate improvement later today. After Tuesday’s downbeat reading of JOLTs job openings and Wednesday’s ADP reading, a strong payrolls report will create a headache for the Fed and could lead to significant volatility in the US dollar.
A little later, the University of Michigan will release December’s preliminary consumer sentiment index, which could also affect the US dollar, especially if it comes in line with the NFP.
From a technical perspective, the bullish engulfing candle printed on the daily chart on Thursday is raising bullish hopes while the 0.6590 support holds.
Here, 0.6655 and the December high, next targets at 0.6590.
On the downside, below 0.6590 the pair may find support at 0.6525 before 0.6520.
