AUD/USD remains under pressure near mid-0.77s post-NFP

The AUD/USD pair, which was able to recover a portion of its sharp losses witnessed in the Asian session, came under a renewed selling pressure in the early NA session as the employment data from the U.S. increased the probability of a rate hike in December. As of writing, the pair was trading at 0.7745, losing 0.7% on the day.

Despite a contraction seen in the total nonfarm payroll employment in September, the unemployment rate in the U.S. eased to 4.2% in September. More importantly, monthly wage growth came in at 0.5%, beating the market expectation of 0.3% and pointing to a pickup in consumer inflation in the short-term. The 10-year T-bond yield advanced to 2.4% for the first time since May, lifting the CME Group FedWatch Tool's rate hike probability above 90%. 

• US: Total nonfarm payroll employment decreased by 33,000 in September
• US: Storm-skewed report means nothing about anything – BBH

With the initial reaction to the data, the US Dollar Index surged to 94.09 and was last seen at 94, adding 0.23% on the day.

• US Dollar index breaks into fresh highs, US wage inflation key driver

Earlier in the day, the aussie suffered losses against its competitors after a Wall Street Journal article quoting the RBA board member revealed that the bank could look for a rate cut in case the slow growth in wages forces the economic growth to lose momentum. On a weekly basis, the pair is losing a little more than 100 pips as its heading to its fourth negative weekly close.

• RBA is still not ruling out rate cut - WSJ

With no more significant data left in the remainder in the session, FOMC members Rosengren, Dudley, Kaplan and Bullard's speeches will be looked upon for fresh impetus.

Technical outlook

The first critical support for the pair could be seen at 0.7690 (200-DMA). With a decisive break below that level, the pair could extend its losses towards 0.7600 (psychological level) and 0.7535 (Jun. 22 low). On the upside, resistances align at 0.7800 (psychological level/ daily high), 0.7840 (100-DMA) and 0.7930 (50-DMA). The RSI indicator on the daily graph is now below the 30 mark, suggesting that the pair could try to make a technical recovery before the next leg down.