FxWirePro: AUD/USD extends previous session's weakness, Aussie depressed on poor December employment data

Chart - Courtesy Trading View 

AUD/USD edges lower from 5-month highs hit on Wednesday's trade, scope for further downside seen on charts.

Aussie dampened across the board after the release of weaker-than-expected December employment data earlier on Thursday.

Australia's labor market shrunk by 14.6K employees in December, while markets were expecting fresh addition of 22.5k jobs.

Further, the Unemployment Rate jumped to 3.5% against the consensus and the former release of 3.4%.

One weak employment report is unlikely to derail the Reserve Bank of Australia's (RBA) policy tightening path.

Traders now focus on the interest rate decision by the People’s Bank of China (PBoC), which is scheduled for Friday. 

Technical Analysis:

- 5-DMA has turned, price action has slipped below 5-DMA

- MACD is on verge of bearish crossover on signal line

- Price action has slipped below 200H MA

- GMMA indicator has turned bearish on the intraday charts

Major Support and Resistance Levels:

Major Support Levels: 0.6861 (21-EMA), Major Resistance Levels: 0.6941 (200H MA)

Summary: AUD/USD trades with a bearish bias on the intraday charts. Scope for test of 21-EMA at 0.6861.