AUD/USD: nonfarm payrolls in focus, eyes on a break below 0.7642?

• AUD/USD: awaits the nonfarm payrolls outcome, dented on a strong greenback.
• AUD/USD: downside playing out and eyes on a break below 0.7642.

AUD/USD has moved into a sideways drift leaning with a bearish bias after completing a near-full reversal of the 0.7660 rally to 0.7726 high. 0.7790 to 0.7673 contains the drift as markets move into a possible phase of consolidation ahead of the nonfarm payrolls report. Currently, AUD/USD is trading at 0.7684, down -0.02% on the day, having posted a daily high at 0.7687 and low at 0.7682.

• Funda/political wrap: risk-on as trade fears get shelved

AUD/USD's downside playout as the greenback firmed and risk sentiment rallied

The recent angst over the possibility of a full-on trade war as diminished on optimism that negotiations will take place before the point of no return. The Aussie chopped and traded within a 0.7670/95 range for the NY session, although, supported by flows through AUD/JPY vs a stronger greenback, (the mood lifted the US Treasury 10-year yield up by 2bps to 2.83%. Stocks rallied as well after a full recovery). The market's focus now shifts over to labour data in the US as well as Chairman Powell’s speech on the economic outlook. 

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart for the pair shows that it's pressuring its daily low, and below a horizontal 20 SMA: "Technical indicators entered bearish territory, with the Momentum limited around its mid-line, leaning the scale toward the downside, albeit a break below 0.7642, this year low, is required to confirm additional declines ahead".