AUDUSD recently fell through support at the .6750 minor psychological mark then bounced off the .6687 area for a quick retest. Price seems to be finding resistance at the 50% Fib at .6742 but could still be due for a larger correction.

The 61.8% level is at .6755 in line with the 100 SMA dynamic inflection point that adds to its strength as a ceiling. If these are enough to keep gains in check,  AUDUSD could resume the slide to the swing low or lower.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse. Price is also below these moving averages, so the indicators could hold as dynamic resistance moving forward.

Stochastic seems to be on the move down to reflect bearish pressure, although the indicator seems to be changing direction midway. RSI is heading higher to indicate that buyers are in control and has room to climb before indicating overbought conditions, so the correction could keep going until the oscillator turns south.

AUDUSD could take cues from leading US jobs indicators, including the ADP employment change figure and ISM services PMI, as traders are bracing for the NFP release on Friday. Another set of downbeat data could bring downside for the US dollar, as this could increase the odds of a 0.50% rate cut later this month.

On the other hand, strong results could dash hopes of a large reduction in borrowing costs and lead to a relief rally for the currency. Still, AUDUSD could benefit from a pickup in risk-taking, if the numbers are enough to ease slowdown or recession concerns.

Earlier this week, data from China came in mixed but mostly downbeat, putting downside pressure on the Australian dollar.