AUD/USD stuck by the US dollar´s rebound

The AUD/USD pair has been stuck by the US dollar´s rebound as all eyes shift to the awaited US NFP data1. The AUD/USD is trading at 0.6720 stuck between 0.6676 and 0.6779 so far12. The US Dollar has been firmer on Wednesday, recovering from two-month lows as investors lightened their short positions ahead of Friday´s US Nonfarm Payrolls and the Easter holidays1.

The combination of this week´s data and a report today that showed US private sector employers added 145,000 jobs in March, well under expectations for a rise of 210,000 is casting a dark cloud over the US Dollar1. The ADP National Employment report showed US private employers hired fewer workers than expected in March, suggesting a cooling labor market1. Private employment increased by 145,000 jobs last month, while economists polled by Reuters had forecast private employment increasing by 200,0001.

The ISM’s Non-Manufacturing index dropped to 51.2 in March from 55.1 in February1. The services sector’s employment indicator sliding as well to 45.8 from 47.6 in February1.

This data falls ahead of Friday´s US Nonfarm Payrolls report whereby traders who are in on Good Friday will be looking for any confirmation that the labour market is cooling, a major requisite in the Fed’s fight to curb inflation1. The consensus for Nonfarm Payrolls this Friday stands at 240k vs. 311k in February, while the unemployment rate is seen steady at 3.6%1.