The beleaguered Australian dollar, last year's worst performing G10 currency, surged roughly 2 percent last week reviving hopes for a comeback, analysts told CNBC.
The Aussie has been heading higher ever since the Reserve Bank of Australia (RBA) removed its easing bias at its first policy meeting of the year. It hit a four-week high of 0.8997 cents on Friday, after weaker-than-expected U.S. jobs data hurt the greenback, giving the Aussie a further boost.
(Read More: Will Australia's jobs shocker put the RBA to work?)
"In the medium term we think we're going to be looking at some Aussie strength," said Chris Tedder, market strategist at Forex.com.
"We've just seen last week the RBA remove its easing bias and that takes away some of the possible Aussie downside," he added.
Australian unemployment data, due out on Thursday, will be closely watched by currency traders after December's huge jobs miss, when Australian employers sacked the most people in nine months, sending the Aussie tumbling to its lowest level since August 2010.
(Read More: Is the worst over for the Aussie dollar?)
But this week's unemployment data could prompt a bounce for the Aussie, said Forex.com's Tedder.
"We are looking for a surprise on the upside in this week's unemployment data so we think that could lead [the Aussie] to move to 90 cents in the short term, and back up to around 92-93 cents in the medium term. That's [the Aussie] one of our favorite trades at the moment," he added.