USD/AUD: NFP Data Could Spark Dollar Rally Amid Strong Jobs Outlook

The US dollar is showing strength against the Australian dollar ahead of Friday's Non-Farm Payrolls release, with USD/AUD trading near 1.5950. Market expectations point to robust job creation of 165,000 positions for December, following November's impressive 227,000 gain. The unemployment rate is forecast to remain steady at 4.2%. Strong employment data would reinforce the Federal Reserve's hawkish stance and potentially delay rate cuts, supporting dollar strength. The Australian dollar remains under pressure from China's economic slowdown and declining iron ore prices. Technical indicators suggest USD/AUD could test resistance at 1.6000 if NFP beats expectations, while disappointment might see support at 1.5900. Traders are positioning for potential volatility, with the Dollar Index hovering near 109.50. A positive surprise in jobs data could accelerate the greenback's rally against commodity currencies.