AUD/USD Continues to Struggle Below 200-DMA, NFP in Focus
As we head towards the release of key macro indicator from the US NFP, the US Dollar seems to gain traction with the AUD/USD pair once again reversing from the vicinity of 200-day SMA to currently trade around 0.7235.
In the current trading week, the pair's repeated attempts to move back above 200-day SMA are being sold into as concerns over Chinese economic slowdown continues to weigh on the Aussie.
The latest economic data released from the mainland China, Caixin China Services PMI for the month of May, fell short of expectations and came-in at 51.2 as compared to 52.0 expected and April's 51.8.
The AUD/USD pair is also bearing the pain of global risk-aversion, which has been denting demand for commodity-linked currencies, like AUD.
Hence, Friday's official report on US monthly jobs number would now be the key determinant of the pair's near-term direction.
Technical levels to watch
Immediate upside seems capped around 200-day SMA region (0.7260-65 zone), beyond which the pair is likely to rally immediately to 0.7315-20 horizontal resistance before heading towards its next major resistance near 0.7370-75 area.
Meanwhile on the downside, 0.7200 handle remains immediate support to watch for. Failure to hold this immediate support is likely to accelerate the fall back towards nearly 3-month lows support near 0.7150-45 zone.