AUD/USD inter-markets: Eyes 0.7570 on lower copper, solid NFP

AUD/USD paused its five-day rally on Friday, as the ongoing bullish move lacked momentum, with traders taking profits off the table heading  into the big risk event for today – the US NFP data.

The Aussie is seen consolidating the recent upsurge backed by recent Trump-led USD weakness and record high trade surplus data. However, over the last hours, downside risks are seen opening up in the major, in wake of tumbling copper prices and a pick-up in demand for the US dollar amid rising treasury yields.

Copper futures on Comex slump -1.30% to $ 2.65 per pound, while the USD index advances +0.16% to 100 marker. The benchmark 10-yr treasury yields rebound +0.70% so far this session. Higher treasury yields usually diminish the demand for AUD as an alternative higher yielding currency.

Further, a majority of the analysts expect 200k job additions in the US economy in  the month of Jan, while average hourly earnings are also expected to tick higher alongside a drop in the US unemployment rate.  

Therefore, its widely expected that a solid US jobs report will provide extra legs to the corrective rally in the greenback against its main competitors, which will eventually accelerate the decline in AUD/USD towards yesterday’s low and hourly 200-SMA located near 0.7570 region.