AUD/USD Weakens on Poor Jobs Data, Eyes US NFP Report

AUD/USD declined 0.4% to 0.6580 following disappointing Australian employment data, with risk appetite faltering ahead of Friday's crucial US Non-Farm Payrolls report. Australian job growth significantly missed expectations, adding only 15.9K positions versus 20K forecast, while the unemployment rate edged higher to 4.1%. The weak labor market data reinforces expectations for potential RBA rate cuts in 2025, pressuring the Aussie dollar. Market sentiment remains cautious with traders reducing risk exposure before the US employment report, which could significantly impact Fed rate expectations. Technical analysis shows AUD/USD breaking below the 0.6600 psychological support, with next support at 0.6550 (December low). Resistance now sits at 0.6620, with a move above needed to neutralize bearish pressure. The pair's direction will likely depend on relative labor market strength between Australia and the US.