FxWirePro: AUD/USD spikes higher, USD offered after weak US ISM data

Chart - Courtesy Trading View 

AUD/USD was trading 1.68% higher on the day at 0.6864 at around 17:45 GMT.

The pair spiked higher after data published earlier on Friday showed weak US ISM data.

US ISM services PMI survey dropped to contractionary territory, fueling speculations for a recession in the US.

The ISM Services PMI unexpectedly contracted to 49.6 vs. 55 estimates, its lowest reading since May 2020, and trailed November’s 56.5 rise.

Further, US December’s labor market data painted a mixed report. NFP data showed US economy added 223K jobs, exceeding estimates of 200K.

Average Hourly Earnings rose by 0.3% MoM, but on an annual basis, fell to 4.6% compared to 5.0% consensus.

Support levels - 0.6794 (5-DMA), 0.6754 (21-EMA)

Resistance levels - 0.6877 (Upper BB), 0.6897 (55-week EMA)

Summary: AUD/USD has bounced off major trendline support and retraced above 200-DMA. A decisive close above 200-DMA will see further upside.