AUD/USD climbs to multi-month highs above 0.7850 as USD selloff picks up steam

The AUD/USD pair gained traction during the American trading hours on Friday and reached its highest level since late February at 0.7862. As of writin  |  07/05/2021 17:00
  • AUD/USD continues to push higher in the American session.
  • US Dollar Index extends slide toward 90.00 on Friday.
  • Disappointing Nonfarm Payrolls report from US weigh heavily on greenback.

The AUD/USD pair gained traction during the American trading hours on Friday and reached its highest level since late February at 0.7862. As of writing, the pair was up 1% on a daily basis at 0.7857.

DXY slumps toward 90.00 after US jobs report

The strong selling pressure surrounding the USD fuels AUD/USD's rally ahead of the weekend. Earlier in the session, the US Bureau of Labor Statistics reported that Nonfarm Payrolls (NFP) in April increased by 266,000. This reading missed the market expectation of 978,000 by a wide margin.

Furthermore, the Unemployment Rate edged higher to 6.1%, compared to analysts' estimate of 5.8%, and March's NFP reading got revised down to 770,000 from 916,000.

With these disappointing figures justifying the Federal Reserve's accommodative stance, the US Dollar Index (DXY) slumped to its level in nearly 10 weeks at 90.21. Currently, the DXY is down 0.73% on a daily basis at 90.23.

In the meantime, the risk-positive market mood is providing an additional boost to the AUD in the late American session. Reflecting the upbeat market mood, the S&P 500 Index is trading at a new all-time high of 4,234, rising 0.8% on a daily basis.

Technical levels to watch for

 

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