AUD/USD retreats toward 0.7300 ahead of key US data

• AUD/USD remains on the back foot on Thursday.
• Employment in Australia declined at a stronger pace than expected in August.
• Investors await Retail Sales and  Initial Jobless Claims data from US.

The AUD/USD pair came under renewed bearish pressure during the Asian trading hours and extended its slide in the European session. As of writing, the pair was down 0.27% on a daily basis at 0.7315.

The data published by the Australian Bureau of Statistics revealed on Thursday that the Unemploıyment Rate fell to 4.% in August from 4.6% in July. However, this decline seems to be caused by a drop in the Participation Rate to 65.2% from 66%. More importantly, the Employment Change arrived at -146.3K, missing the market expectation of -70K by a wide margin.

Focus shifts to US data

On the other hand, the renewed USD strength is putting additional weight on AUD/USD's shoulders ahead of the American session. Currently, the US Dollar Index is up 0.35% on the day at 92.78.

Later in the day, the US Census Bureau will release the August Retail Sales data. Investors expect a contraction of 0.8% on a monthly basis. Additionally, the US Department of Labor's weekly Initial Jobless Claims report will also be looked upon for fresh impetus.

In the meantime, US stock index futures trade in the negative territory on Thursday, suggesting that the greenback could preserve its strength in case market mood remains sour in the second half of the day.

Technical levels to watch for