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AUD/USD Cracks the 2014-Low after the Strong NFP Report

Today, we saw the USD rally across the board after the strong Non-Farm Payroll report, which surprised forecasts of around 216K with a print of 248K. The August reading was revised up to 180K from 142K. The unemployment rate also fell to 5.9% from the 6.1% seen in August. 

AUD/USD 4H Chart 10/3(click to enlarge)

The AUD/USD consolidated earlier in the week, rallying from 0.8663 to 0.8826. The 0.8660 level was the 2014-low. If price held above 0.8750, the AUD/USD would have been building a price bottom and the case for a bullish correction. However, the NFP report dragged the pair lower, and AUD/USD cracked the 0.8660 low, making a fresh low on the year, so far at 0.8642.

AUD/USD Weekly Chart(click to enlarge)

When we look at the weekly chart, we can see that the next key support pivot might be at 0.8066, the 2010-low. The AUD/USD might not get there in the short-term especially with oversold condition seen in the weekly and daily charts, but this is a viable target for 2015.