Aussie recovery stalled near 50-DMA, awaits US NFP

A rebound in the AUD/USD pair from 100-DMA on Wednesday ran out of steam as the prices neared 50-DMA in the NY session on Thursday. The spot remains below 50-DMA and is looking wobbly ahead of the US non-farm payrolls release.

August payrolls an erratic number

August payrolls has proved to be a highly erratic figure for the past five years. A big miss is usually followed by an upward revision in the subsequent months. Hence, it would be interesting to see if the dollar weakness remains intact in case the payrolls disappoint expectations.

Moreover, the erratic nature of the NFP figure makes wage growth number even more important. Whether the spot breaks above 50-DMA or takes out 100-DMA support largely depends on wage growth print.

AUD/USD Technical Levels

The spot was last seen trading around 0.7545 levels. Breach of 5-DMA support of 0.7537 could yield re-test of 0.7492 (100-DMA). A break lower would open doors for more sustained sell-off to 0.7443 (July 22 low). On the higher side, breach of 50-DMA hurdle of 0.7561 would expose 0.7584 (Aug 22 low) – 0.76 handle.