FxWirePro:AUD/USD attracts selling interest, could be on verge of a bigger drop

• AUD/USD dipped on Wednesday as  stronger than expected labor market reading  boosted dollar  .

• U.S. jobless claims fell to a one-month low last week, but hiring remained weak and unemployment likely stayed high.  

• Initial claims for state unemployment benefits fell by 16,000 to a seasonally adjusted 199,000 in the week ended December 27, the Labor Department said on Wednesday, well below economists’ expectations of 220,000..

• Continuing U.S. jobless claims declined by 47,000 to 1.866 million, signalling modest improvement in hiring conditions.

•Minutes from the Fed’s December 9–10 meeting showed policymakers agreed to cut interest rates only after a deeply nuanced debate over the risks facing the U.S. economy.

• Immediate resistance is located at 0.6701(Daily high), any close above will push the pair towards 0.6724(23.6%fib).

• Support is seen at 0.6653 (SMA 20) and break below could take the pair towards 0.6638(38.2%fib).

 Recommendation: Good to sell  around 0.6670, with stop loss of 0.6750 and target price of 0.6620