AUD/USD consolidates in a narrow range around 0.6600 ahead of the US NFP data

• AUD/USD remains confined near 0.6600 in the early Monday session.
• US weekly Initial Jobless Claims surged to 220K, Continuing Claims dropped to 1.861M vs. 1.925M prior.
• The Australian trade surplus narrowed to 7,129M in October from 6,184 in September.
• US Nonfarm Payrolls will be in the spotlight on Friday.

The AUD/USD pair oscillates in a narrow range around the 0.6600 psychological mark during the early Asian session on Friday. The weaker-than-expected Australian data and the pessimism about China’s economic outlook weigh on the Australian Dollar. AUD/USD currently trades near 0.6599, down 0.09% on the day.

The US weekly Initial Jobless Claims for the week ending December 1 surged to 220K, below the market expectation of 222K. Continuing Claims dropped to 1.861M from 1.925M, worse than the 1.919M expected. Traders will take more cues from the US employment data on Friday. The US Nonfarm Payrolls are expected to rise by 180K and the Unemployment Rate is estimated to remain steady at 3.9%. The stronger-than-expected data might boost the US Dollar (USD) and act as a headwind for the AUD/USD pair.

On the Aussie front, the October Trade Data failed to lift the Australian Dollar (AUD). The trade surplus narrowed to 7,129M in October from 6,184 in the previous reading, below the market estimation of 7,500M. Furthermore, China’s commodity imports for November raised concern about the economic slowdown in the world’s second-largest economy. The downbeat data and renewed worries about China's economy could convince the Reserve Bank of Australia (RBA) to cut rates in 2024, which might drag the AUD lower.

Looking ahead, market participants will closely watch the US Nonfarm Payrolls, due later on Friday. Also, the Unemployment Rate, Average Hourly Earnings, and the University of Michigan’s Consumer Sentiment Index will be released. These events could trigger the volatility in the market and keep a clear direction to the AUD/USD pair.