• AUD/USD remains restricted to 0.6850 amid caution ahead of the US NFP data for September.
• The US NFP data will significantly influence the Fed’s interest rate cut path.
• Investors await the RBA minutes to project the next move in the Australian Dollar.

The AUD/USD pair remains offered near the key resistance of 0.6850 in Friday’s European session. The Aussie asset would continue to face pressure as traders brace for the United States (US) Nonfarm Payrolls (NFP) data for September, which will be published at 12:30 GMT.

With growing conflicts in the Middle East region, market sentiment remains uncertain. Risk-perceived currencies are under pressure as rising Oil prices due to Israel-Iran war would result in a sharp increase in foreign outflows of those economies, which are highly dependent on imported Oil. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, clings to gains near 102.00.

The US NFP will be under the spotlight as it would force traders to adjust market expectations for Federal Reserve’s (Fed) monetary policy action in the remaining two meetings this year. Currently, financial markets are slightly confident about the Fed to reduce interest rates further by 75 basis points (bps).

Economists expect the addition of fresh payrolls at 140K, marginally lower than 142K in August. The Unemployment Rate is seen steady at 4.2%. Market participants will also focus on the Average Hourly Earnings data, a key measure to wage growth that drives consumer spending. The annual wage growth measure is estimated to have risen steadily by 3.8%, with monthly growth rate slowing to 0.3% from 0.4% in August.