The Australian dollar remains supported near 0.7200 against the USD, balancing geopolitical risks and upcoming US nonfarm payrolls data.
The AUD/USD pair stabilized above the 0.7200 level during Friday’s Asian trading session, failing to extend gains despite support at that mark. Persistent geopolitical tensions, particularly involving Iran, provided a floor for the currency pair, limiting downside pressure.
Earlier in the week, the pair traded in a tight range as investors awaited the US nonfarm payrolls (NFP) report, a key indicator for Federal Reserve policy expectations. Consensus estimates suggest a moderation in job growth, which could influence USD strength and risk sentiment.
Market reaction remained muted ahead of the data release, with traders cautious amid mixed signals from global risk assets and commodity prices.