AUD/USD drops further on USD strength, eyes October lows
- Dollar jumps pushing the pair further to the downside.
- Spot headed toward the lowest daily close in three months.
The AUD/USD pair rose toward 0.7700 after the release of the NFP but turned again to the downside. A stronger US Dollar pushed it below 0.7660. It reached a 1-week low at 0.7638 and remains under pressure.
Data and USD
The Aussie was already among the worst performers on Friday. During the Asian session, the Australian retail sales report showed that sales remained unchanged in September against expectations of a 0.4% increase.
AUD/USD broke below an uptrend line, and since then it is moving with a bearish bias. The US jobs report offered just a pause. Numbers were positive but below expectations. Later, the non-manufacturing ISM and the factory orders reports posted higher-than-expected readings and boosted the greenback.
The US dollar is about to end the week on a strong note. The US Dollar Index tested weekly lows and rebounded. DXY reached at 94.88, the highest since last Friday.
AUD/USD Levels to watch
Short-term technical indicators favor the downside. The pair is pointing toward last week lows at 0.7625; below the next support, levels might lie at 0.7600 and 0.7565 (Jul 5 low).
To the upside, the immediate resistance is now seen at 0.7560, followed by 0.7700 and 0.7725/30.