AUD/USD slips as trade war fears reignite

• The Aussie loses grip after stabilizing late Thursday, driven lower by the announcement of continued trade war tensions.
• Market sentiment heads into NFP Friday on the back foot.

The AUD/USD is falling into the 0.7660 level as markets wither following Trump's announcement that he's seeking additional tariffs against China.

The Aussie declined in Thursday's action against the Greenback as markets restabilized following the early week's trade war fears, and markets were geared for a quiet transition into the Asia and Europe markets ahead of the US NFP jobs report, but the White House announced it's asking the USTR to consider tariffs on an additional $100 billion worth of goods from China, and markets have knocked lower on reaction as Trump reignites trade fears and blows the week's recovery attempt out of the water.

Markets will now be heading into the Non-Farm Payrolls event on Friday trying to recover sentiment, and the following Tokyo and Europe sessions will determine the tone of the Greenback for the volatile release.

AUD/USD Levels to watch

Today's drop brings the Aussie closer to the year's low at 0.7642, and as FXStreet's Chief Analyst Valeria Bednarik noted earlier, "Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart for the pair shows that it's pressuring its daily low, and below a horizontal 20 SMA: "Technical indicators entered bearish territory, with the Momentum limited around its mid-line, leaning the scale toward the downside, albeit a break below 0.7642, this year low, is required to confirm additional declines ahead".