The Australian dollar took another hit on Friday and the AUDUSD pair was down 0.7% during the London session, hovering around 0.7150, which are levels unseen since February 2016.

The carnage on the emerging markets is also putting pressure on the Australian dollar and it behaves like an emerging markets currency. If the damage spreads from EM to developed countries, commodity currencies will be hit the hardest.

Later in the day, more volatility should come as market participants await the US labor market numbers. The non-farm payrolls figure is seen rising to 191,000 from 157,000 previously, while the unemployment rate is expected to improve as well to 3.8% from 3.9% in July. Wage growth should, however, stay at 2.7% year-on-year.

The price is sliding at the lower support line, which is currently around 0.7150. If this level cracks, further deteriorate toward the 0.71 level could occur.

On the upside, the first resistance is seen at previous lows at 0.72 and if not held, the relief rally could send the Aussie to the 0.73 mark. The trend remains bearish, but the pair appears oversold and therefore some short squeeze rallies could happen.