AUD: Thursday's AU Employment Report A Focal Point - BNPP

The commodity currencies continue to gradually gain ground against the USD this week, notes BNP Paribas.

"This comes against a backdrop of stable equity markets but a rebound of several key commodity prices," BNPP adds.

"For the AUD, a renewed bounce in iron ore prices (rising almost 7% this week) is likely to be feeding through to support for the AUD. Overnight, the conditions component of the NAB business survey was stronger than expected, reaching its highest level since early 2008.

Thursday’s employment report is a focal point for the AUD as this is a potential catalyst for an increase in pricing for renewed RBA rate cuts," BNPP argues. 

BNPP remains short AUDNZD* targeting 1.06 and long EUR/AUD via a derivatives structure.