AUDUSD
AUDUSD slide for the fourth consecutive trading day, as the risk-off sentiment returns, with investors taking profits in stocks and other risky assets after the recent rally. The Australia Retail Sales seasonally adjusted revised in at 3.2% in July below the expectations of 3.3%. Australian Prime Minister Morrison said that the government would develop a new plan to re-start the economy by December.
Yesterday, the Australian Services PMI came in at 49, topping the estimates of 48.1 in August, while the Composite PMI rises to 49.4 in August from 48.8 in July. Australia Trade Balance reported at 4607M below the expectations of 5400M in July, as the Exports fell from previous 3% to -4% while Australia Imports climbed to 7% in July from 1% in June.
In the economic calendar, the NFP report is the main event of the day. Analysts expect an increase of 1.4 million jobs in comparison to 1.700 million in July. The unemployment rate is expected to 9.8% from 10.2%.
AUDUSD extend loses down to 0.7267 as the USD final attract some bids and managed to rebound from two-year lows. Despite the recent correction, the bullish bias is intact for the pair above the 0.71 mark. I have mentioned that support in the previous article: AUDUSD Bullish Bias In Tact Above 0.6980.
High volatility is expected today after the NFP report. Intraday support for AUDUSD is at 0.7251, the daily low. Next level to watch for AUDUSD on the downside is 0.7189 the low from August 26. A move below the 50-day SMA would cancel the bullish momentum.
On the other side, resistance for the pair is at 0.7278 the daily high. More sellers would emerge at 0.7339 the high from September 3. The recent top at 0.7417 is the next supply zone.
