The AUD/USD currency pair bounced back on Thursday, April 7th, after paring weekly losses around the 0.6680 level. Traders were preparing for the release of the US Nonfarm Payrolls (NFP) report during the holiday-driven sluggish session on Good Friday. This was the first time in four days that the Aussie pair posted daily gains, with investors taking note of the positive headlines coming out of Australia’s major customer, China.
Positive News from China Boosts Australian Dollar
China is Australia’s largest trading partner, accounting for nearly 39% of all of Australia’s exports. Any positive news from China is generally seen as a positive for the Australian dollar, and Thursday’s news was no different. According to reports, China’s trade surplus expanded to $116.35 billion in March, up from $103.25 billion in February. This was largely due to an increase in exports, which rose by 30.6% from a year ago. The news helped to boost the Australian dollar, which rose to a high of 0.6709 against the US dollar.
Traders Await US Nonfarm Payrolls Report
Despite the positive news from China, traders remained cautious ahead of the release of the US Nonfarm Payrolls report on Friday, April 8th. The NFP report is a key economic indicator that measures the number of jobs added or lost in the US economy during the previous month. It is closely watched by investors as it provides insight into the overall health of the US economy. Economists are expecting the report to show that the US economy added 647,000 jobs in March, up from 379,000 in February.
Implications for the Australian Dollar
The US Nonfarm Payrolls report can have a significant impact on the value of the Australian dollar. A stronger-than-expected report could lead to an increase in the value of the US dollar, which could put downward pressure on the AUD/USD currency pair. On the other hand, a weaker-than-expected report could lead to a decrease in the value of the US dollar, which could boost the value of the Australian dollar.
Conclusion
In conclusion, the AUD/USD currency pair saw gains on Thursday, April 7th, after paring weekly losses around the 0.6680 level. The positive news coming out of Australia’s major customer, China, helped to boost the Australian dollar. However, traders remained cautious ahead of the release of the US Nonfarm Payrolls report on Friday, April 8th, as the report has the potential to significantly impact the value of the Australian dollar.
