AUD/USD falls to near 2-week lows, below 0.80 mark ahead of NFP

   •  Modest USD rebound/surging US bond yields weighing heavily. 
   •  Poised to snap seven consecutive weeks of winning streak.
   •  Focus remains on the key US monthly employment details. 

The AUD/USD pair remained heavily offered through the mid-European session and tumbled to near two-week lows in the past hour.

The pair accelerated this week's rejection slide from the 0.8120 supply zone and traded with a negative bias for the fifth consecutive session amid the ongoing upsurge in the US Treasury bond yields. 

Investors now seemed convinced that the Fed would stick to its plan and deliver at least three rate hikes in 2018 and was eventually seen driving flows away from higher-yielding currencies - like the Aussie. 

Adding to this, a modest pickup in the US Dollar aggravated the selling pressure and dragged the pair below the key 0.80 psychological mark to an intraday low level of 0.7976, the lowest since Jan. 23.

Moving ahead, investors' attention on Friday will remain glued to the keenly watched US monthly jobs report, NFP, which drive the greenback in the near-term and provide some fresh directional impetus for the major.

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet, “the Aussie could take out 0.7986 (23.6% Fib R of Dec-Jan rally) and extend the decline to 0.7893 levels. Also, worth noting that Aussie-US 10-year spread has dropped close to parity in the AUD negative manner. The spread could turn negative if the US wage growth data due at 13:30 GMT beats estimates.”

“The bulls have failed to cut through the neckline of the larger inverse head and shoulder-like pattern (also looks like a rounding bottom). The AUD/USD may regain poise on weak US wage growth numbers, however, only a convincing break above 0.8118 (neckline) would revive the bull market.”