AUD/USD testing key 0.75 support

Following an initial spike to 0.7544 on disappointing NFP figures, the AUD/USD pair came back under pressure and dropped to 0.7503 as the greenback quickly recovered the lost ground. At the moment, the pair is down 0.41% at 0.7515.

On Friday, the pair broke below the 100-DMA for the first time since January 17 after the news of a US bombing in Syria triggered a fresh wave of risk aversion. Unless the pair closes the day above 0.7538, it's going to record losses for every single trading day of the week. 

It didn't take long for the US Dollar Index to correct the knee-jerk downward spike after the weak payroll figures as the labor market gave strong signs of stabilization. Although the participation rate was unchanged at 63%, the unemployment rate, at 4.5%, recorded a new cyclical low. Besides, the winter storm of March is believed to have skewed the data. 

• Dollar resilient after weak jobs data - BBH
• US: Total nonfarm payroll employment edged up by 98,000 in March

Technical outlook

The 100-DMA at 0.7530 aligns as the first technical resistance for the pair before 0.7600 (psychological level) and 0.7635 (20-DMA/50-DMA). On the downside, a break below 0.7500 (psychological level) could open the door to 0.7455 (Jan. 16 low) and 0.7380 (Jan. 10 high).