If AUD/USD bulls can't prevail on positive data?

FXStreet (Guatemala) - AUD/USD bulls were trying to get away with a bid after the Chinese trade data and the Aussie jobs data, but that was a short-lived break out and the bulls are locked up again within the bearish weekly stick. The daily chart offers some signs of consolidation ahead of the September lows of 0.6907 while the recent low has been 0.6910.

If the jobs data, albeit dubious, cannot save the Aussie then that is telling. The Fed has been put on the back burner amongst the malaise of the Chinese crisis, but as soon as that theme comes back into vogue and with the RBA either holding or looking more and more dovish, that divergence should underpin the downside and put the trend back on track without interruptions such as what we saw at the end of 2015 in the minor recovery attempt.

AUD/USD levels

Technically, Karen Jones, chief analyst at Commerzbank is bearish on the outlook and noted that AUD/USD appears to have already failed at .7050 and we have lowered our stops on our short positions. "Risks are on the downside longer term and we target the .6774 2004 low. Initial downside target is the September low at .6905, and it is possible that this will again hold."