FxWirePro : AUD/USD drifts lower, could be on verge of bigger drop

• AUD/USD drifted lower on Wednesday as dollar remained firmas markets wagered on near-term U.S. rate hike.

•  Futures narrowed the odds on rate hikes from the Federal Reserve ahead of crucial jobs figures on Thursday. A move in September is almost fully priced in.

• Geopolitical uncertainty remains elevated after Iran reiterated that it will not hold talks with U.S. officials in Doha, limiting   gains in commodity-linked currencies such as the Australian dollar.

• Investors are now turning their attention to Thursday's U.S. June Non-Farm Payrolls report, with economists expecting the economy to have added 110,000 jobs. The employment data is likely to influence Federal Reserve rate expectations

• Minutes of the Reserve Bank of Australia's June meeting revealed that policymakers continued to view inflation risks as skewed to the upside and stood ready to tighten monetary policy further if warranted.

•  Immediate resistance is located at 0.6933 (Daily high), any close above will push the pair towards 0.6980(50%fib).

•  Support is seen at 0.6867(38.2%fib) and break below could take the pair towards 0.6820(Lower BB).

 Recommendation: Good to sell  around 0.6900 with stop loss of 06980 and target price of 0.6850