AUD/USD trades with modest losses around 0.7460 ahead of US NFP data

• AUD/USD struggles to stage a convincing rebound on Friday.
• US Dollar Index stays in the positive territory above 92.50.
• Focus shifts to Nonfarm Payrolls data from US.

After closing the first four days of the week in the negative territory, the AUD/USD pair extended its slide and touched its lowest level since early December at 0.7449 on Friday. With the trading action turning subdued ahead of key data releases from the US, the pair stays relatively quiet and was last seen losing 0.1% on the day at 0.7461.

Earlier in the day, the data from Australia showed that Home Loans in May increased by 1.9%. Moreover, Investment Lending for Homes rose to 13.3% from 2.1% in April. Nevertheless, these readings were largely ignored by market participants.

Eyes on June NFP report

Later in the session, the US Bureau of Labor Statistics' June jobs report will be watched closely by market participants. Investors expect Nonfarm Payrolls to increase by 700,000.

FOMC policymakers have been pointing out employment as the key factor in determining the timing of asset tapering and a stronger-than-expected NFP print could help the USD continue to gather strength against its rivals ahead of the weekend. On the other hand, a disappointing NFP figure could trigger a correction in the US Dollar Index (DXY) and help AUD/USD erase a portion of its weekly losses. 

Currently, the DXY is trading at its highest level in nearly three months at 92.62, rising 0.1% on a daily basis.

NFP Preview: Four reasons why June's jobs report could be a dollar downer.

Technical levels to watch for