AUD: A$ Ticks Higher Amid Broader USD Softness, US NFP Eyed Later

AUD/USD tracked mostly firmer through Thursday trade. The pair sits near 0.6740 in early Friday dealings, around late US session highs from their Thursday session. The August 29 high at 0.6824 remains the upside focus, which is also the bull trigger. The 50-day EMA is at 0.6674 on the downside. The A$ was up nearly 0.25% for Thursday's session, around mid range from a relative G10 standpoint. USD indices remained on the backfoot, with the DXY down a further 0.30%, ahead of the key US NFP print later. 

• US labor market indicators were mixed on Thursday, with ADP a decent miss, but initial jobless claims resilient. US yields finished 1-4bps lower, led by the back end of the curve.
• Global equities were mostly weaker, albeit with modest losses for key aggregate indices. This didn't impact A$ sentiment greatly though. AUD rose by slightly more versus the yen for Thursday's session. AUD/JPY sits near 96.65/70 in early Friday dealings. Intra-session lows from Thursday were close to 96.00.
• The Bloomberg aggregate commodity index rose 0.30% yesterday, but the metals index fell 0.29%, its 6th straight decline. Still iron ore and copper finished up from recent lows. Iron ore (SGX active contract), was last at $92.35/ton. Yesterday's sharp intra-session fall didn't impact AUD materially.
• On the data front today, we have July home loans. The market expects +1.0%m/m (prior was 1.3%). Yesterday's speech by RBA Governor Bullock suggested little prospect of a near term rate cut, with the Governor still leaving the door ajar for higher rates if inflation disappoints.