AUD/USD tops 0.7000 for the first time since Jan 2020, US NFP eyed

• AUD/USD bulls unstoppable as risk-on narrative remains in play.
• Economic rebound hopes, Australia set to ease border restrictions.  
• All eyes on US payrolls data amid broad US dollar sell-off.

The bullish momentum around AUD/USD remains unabated in the European session, as the spot conquered the 0.70 handle for the first time since January 2020 before retreating slightly to 0.6990 region, where it now wavers.

Following a brief consolidative stint around 0.6950 in Asia, the aussie picked up fresh bids in early Europe after the US dollar resumed its downslide across the board. The risk-on narrative returned to markets, in the wake of the optimism over the economic rebound, and downed the US dollar broadly. The US dollar index drops 0.22% to a new three-day low of 96.46, having stalled the overnight bounce near 96.80.

The seven-day long winning streak gains further traction after the AUD got a fresh boost from the latest headlines, citing that Japan and Australia are likely to discuss easing border restrictions. Australia’s Prime Minister (PM) Scott Morrison said earlier today that he is very much in favor of a travel bubble with New Zealand.

Also, no fresh updates between the US and China conflict also pleased the buyers, as the attention now shifts towards the critical US Non-Farm Payrolls data due later today at 1230 GMT. Upbeat US ADP jobs data raises hopes of a better US NFP report.

AUD/USD technical levels to watch

The upside targets are seen 0.7050 (psychological level) and 107.97 (daily classic R3) in the near-term. To the downside, the supports are aligned at 0.6937 (daily pivot), 0.6909 (5-DMA) and 0.6886 (daily classic S1).

AUD/USD additional levels