AUD/USD struggles near 0.6425 area, just above multi-month low ahead of US NFP

• AUD/USD attracts fresh sellers and is pressured by a combination of factors.
• A softer risk tone and bets for an early RBA rate cut undermine the Aussie.
• Subdued USD demand fails to lend any support ahead of the US NFP report.

The AUD/USD pair maintains its offered tone through the first half of the European session on Friday and currently trades near the 0.6425 region, down around 0.40% for the day. 

Spot prices remain close to the lowest level since August touched on Wednesday and seem vulnerable, though bearish traders opt to wait for more cues about the Federal Reserve's (Fed) rate-cut path before placing fresh bets. Hence, the focus will remain glued to the US Nonfarm Payrolls (NFP) report. The crucial jobs data will guide the Fed policymakers' decision at the December meeting and drive the US Dollar (USD) demand, which, in turn, should provide a fresh impetus to the AUD/USD pair. 

Heading into the key data risk, expectations for a less dovish Fed, along with a slight deterioration in the global risk sentiment, help limit the recent USD decline to a three-week low and act as a headwind for the perceived riskier Australian Dollar (AUD). Apart from this, rising bets for an early interest rate cut by the Reserve Bank of Australia (RBA), bolstered by this week's softer domestic GDP growth figures released earlier this week, contribute to the offered tone surrounding the AUD/USD pair. 

Apart from this, persistent geopolitical tensions, China's economic woes and concerns about US President-elect Donald Trump's lingering trade tariffs suggest that the path of least resistance or the risk-sensitive Aussie is to the downside. Hence, any attempted recovery might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly. Nevertheless, the AUD/USD pair seems poised to register weekly losses and could possibly post its lowest 2024 weekly close.