AUD/USD extends softer Aussie data-led slide farther below 0.7700 handle

   •  Dismal Aussie retail sales negate upbeat Chinese services PMI.
   •  Sliding US bond yields might lend some support.
   •  US monthly jobs data holds the key. 

The AUD/USD pair came under some fresh selling pressure on Friday and eroded majority of its previous session's strong gains to over one-week tops. 

The pair snapped two-consecutive days of winning streak and retreated back below the very important 200-day SMA, around the 0.7700-07695 region) on weaker domestic data. Investors dumped the Australian Dollar after retail sales remained flat in September, better-than the 0.5% fall seen last time but was worse than 0.4% growth expected. 

The selling pressure remained unabated following the release of better-than-expected Caixin Chinese services PMI, printing 51.2 in October, which tends to extended some support to the China-proxy Australian Dollar.

   •  China’s Caixin Services PMI rises beyond expectations in October

Meanwhile, retracing US Treasury bond yields might now collaborate towards limiting deeper losses for higher-yielding currencies – like the Aussie, at least for the time being. 

With the US Dollar largely unaffected by the US President Donald Trump's nomination of Jerome Powell as the new Fed Chair and official unveiling of the long-awaited tax plan, investors’ focus shifts to the keenly watched NFP report, due later during the NA session. 

Technical levels to watch

Immediate support is pegged near 0.7675 level, below which the pair is likely to slide back towards 0.7655 strong horizontal support en-route 0.7625 level (multi-month lows) and the 0.7600 handle.

On the upside, the 0.7700 handle now becomes immediate resistance, above which the pair is likely to make a fresh attempt towards surpassing 0.7725-30 supply zone and test its next hurdle near mid-0.7700s.