AUD/USD stages modest recovery post-NFP, stays below 0.77

• Nonfarm payroll rebounds strongly in October, wage growth retreats.
• DXY turns negative on the day near mid-94s.
• Non-manufacturing PMI data next in line.

After dropping to a fresh two-day low at 0.7660, the AUD/USD pair rose more than 30 pips with the initial reaction to the nonfarm payroll data from the United States but failed to preserve its bullish momentum. At the moment, the pair is trading at 0.7675, losing 0.5% on the day.

Unemployment in the US at 17-year lows

According to the data released the U.S. Bureau of Labor Statistics, total nonfarm payroll employment rose by 261,000 in October and the September data, which showed a decrease of 33,000, got revised up to 18,000. Moreover, the unemployment rate eased to its lowest level in 17 years at 4.1%. Despite those upbeat readings, however, the greenback came under pressure as the wage growth, measured by the average hourly earnings, showed no change from September to October and fell to 2.4% from 2.8% on a yearly basis. 

• US: Total nonfarm payroll employment rose by 261,000 in October

Nevertheless, the negative reaction didn't last long, allowing the buck to regain its footing. The US Dollar Index, which plummeted to a session low at 94.30, is now at 94.56, losing 0.07% on the day. 

Later in the session, the Markit and the ISM will be both releasing their PMI data for the service sector in the United States. A higher-than-expected reading is likely to help the DXY turn flat around 94.75 before the end of the week.

Technical levels to consider

The RSI indicator on the daily graph continues to move south below the 50 mark, suggesting that the sellers are still in control. Support for the pair could be seen at 0.7625 (Oct. 27 low) ahead of 0.7570 (Jul. 25 low) and 0.7500 (psychological level). On the upside, resistances align at 0.7710 (200-DMA), 0.7770 (20-DMA) and 0.7880 (Oct. 20 high/50-DMA).