AUD/USD bounces back a little to 0.7025 from lows of 0.7003 earlier
The pair remains pressured to the downside on growing expectations for the RBA to cut rates this year following a poor Q4 GDP report seen earlier in the week. The dollar is somewhat sluggish in the European morning so far, as it is the weakest performing major currency at the moment as we await US non-farm payrolls data.
That is still the key risk event for AUD/USD as we look to wrap up the week. Aside from that, there are large expiries sitting at 0.7000 (I've been pointing this out since Wednesday) and that is helping to keep downside in the pair limited as well via option-related bids.
As it stands, notable offers are still sitting around 0.7050 near the 100-hour MA (red line) so that will be a key near-term level that buyers must break above in order to retrace some of the losses seen since last week.
Meanwhile, for downside movement, be wary of a potential dive below 0.7000 after 1400 GMT (when the expiries roll off) if US data beats expectations heftily. That being said, this is one of the less anticipated non-farm payrolls releases so I wouldn't be banking on a sizable move in the dollar.
However, as mentioned, just be wary because the 0.7000 handle is a key psychological level and when stops below it get hit, things could get ugly.
