AUD/USD Consolidates Around 0.6600 Ahead of US NFP Data

AUD/USD is trading within a narrow range around the 0.6600 level in the Asian trading session on Friday. Concerns about China's economic outlook and the temporary pause in the US Dollar's decline have restrained this currency pair ahead of the highly significant US NFP data. In Australia, October trade data failed to support the Australian Dollar (AUD). The trade surplus decreased to 7.129 million in October from the previous reading of 6.184 million, falling below the market estimate of 7.500 million. Furthermore, China's November import data has raised concerns about an economic slowdown in the world's second-largest economy. Optimistic data and new concerns about China's economy could convince the Reserve Bank of Australia (RBA) to cut interest rates in 2024, potentially pushing the AUD lower.

Next, market participants will closely monitor the US Non-Farm Payrolls (NFP) report, scheduled for release later on Friday. Additionally, the Unemployment Rate, Average Hourly Earnings, and the University of Michigan Consumer Sentiment Index will be published. These events could cause market volatility and provide clearer direction for the AUD/USD pair.