The AUD/USD pair faces selling pressure near 0.6380 while attempting to extend recovery in the early New York session. The Aussie asset struggles to extend recovery as the US Dollar finds a cushion to near 106.50 after correcting from an 11-month high at 107.35.
The US Dollar is expected to remain volatile ahead of the US Nonfarm Payrolls (NFP) data, which will be published on Friday. The labor demand is seen softening considering the ADP Employment Change data, released on Wednesday, which showed private payrolls halving to 89K in September from the former release of 180K.
Meanwhile, the US Department of Labor reported the weekly Jobless Claims data for the week ending September 29 almost unchanged at 207K.
On the Australian Dollar front, monthly Trade Balance data increased significantly to 9,640M, higher than expectations of 8,725M and the former release of 7,324M.
AUD/USD faces selling pressure after testing the breakdown of the consolidation formed in a range of 0.6366-0.6522 on a daily scale. The 50-day Exponential Moving Average (EMA) at 0.6464 continues to act as a barricade for the Australian Dollar bulls.
A bearish impulse would trigger if the Relative Strength Index (RSI) (14) shifts into the bearish range of 20.00-40.00.
A fresh downside would appear if the Aussie asset drops below October 03 low around 0.6286. This would expose the asset to 21 October 2022 low at 0.6212, followed by 13 October 2022 low at 0.6170.
In an alternate scenario, a decisive break above August 15 high around 0.6522 will drive the asset to August 9 high at 0.6571. Breach of the latter will drive the asset towards August 10 high at 0.6616.
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