AUD/USD struggles around 0.6900 as DXY turns volatile ahead of US NFP

• AUD/USD is facing barricades around 0.6900, upside remains favored amid volatile DXY.
• Lower consensus for the US NFP is hurting the DXY.
• In today’s session, investors’ entire focus will remain on the Aussie Buildings Permit data.

The AUD/USD pair is facing wrath around the immediate hurdle of 0.6900 in the Asian session. The asset is displaying topsy-turvy moves near the crucial figure of 0.6900 as the US dollar index (DXY) has turned volatile at the open. Broadly, the asset is displaying back-and-forth moves in a 0.6883-0.6926 range after a vertical upside move from Monday’s low near 0.6840.

The DXY is expected to scale down further after a corrective move as a rebound in the risk-sensitive currencies is hinting that gains are not limited for now. Apart from that, the dismal forecast for the US Nonfarm Payrolls (NFP) is also impacting the DXY.

According to the preliminary estimates, the US NFP is expected to decline dramatically to 285k, against the prior release of 528k. Also, the Unemployment Rate is expected to remain stable at 3.5%. It is worth noting that the US economy is conserving the jobless rate at 3.5% from a decent period and which has squeezed room for more job opportunities. The job creation process is increasing significantly but at a diminishing rate, which doesn’t warrant a decline in the labor data.

On the Aussie front, the market participants will focus on the Building Permits data, which is expected to decline further by 2% vs. the prior decline of 0.7%. A decline in the economic data may impact the aussie bulls. Also, the antipodean is still in the hangover of the Retail Sales data released on Monday. The Australian Bureau of Statistics reported upbeat Retail Sales data. The economic data landed at 1.3%, higher than the consensus and the prior release of 0.3% and 0.2% respectively.