AUD/USD retreats to mid-0.7800s post-ADP report

The AUD/USD pair once again failed to clear 0.7870-75 immediate supply zone and quickly retreated around 20-pips following a report on the US private sector employment. 

Currently trading around mid-0.7800s, the pair ran through some fresh offers after the latest ADP report showed an addition of 135K new private sector jobs during September, better-than 125K expected. 

Although the reading was worse than previous month's downwardly revised 228K jobs, the fact that Hurricane’s Harvey and Irma had significantly impacted the job market provided some immediate respite for the US Dollar bulls.

Despite of the sharp pull-back, the pair held with daily gains for the second straight session amid speculations over the next Federal Reserve Chairman, which contributed towards a weaker tone around the US Treasury bond yields and was eventually seen lending support to higher-yielding currencies - like the Aussie. 

   •  USD: Softer tone guided by Fed chair uncertainty - BBH

Next on tap would be the release of US ISM non-manufacturing PMI. This followed by the Fed Chair Janet Yellen's scheduled speech would be looked upon for some fresh impetus ahead of Australian macro data - monthly retail sales and trade balance data, due for release during early Asian session on Thursday.

   •  Australia: Retail sales important for gauging consumer sentiment - Westpac

Technical levels to watch

Below mid-0.7800s, the pair is likely to find support near 0.7830 level, which if broken could accelerate the fall towards the 0.7800 handle en-route 100-day SMA support near the 0.7775-70 region.

On the upside, 0.7870-75 zone remains immediate strong supply zone, above which the pair is likely to move past the 0.7900 handle towards testing 50-day SMA hurdle near the 0.7935 region.