FxWirePro: AUD/USD extends previous session's gains, Aussie Building Permits data eyed for further impetus

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.17% higher on the day at 0.7193 at around 05:00 GMT.

Previous Week's High/ Low: 0.7277/ 0.7129

Previous Session's High/ Low: 0.7187/ 0.7129

Fundamental Overview:

Mixed prints of the US employment data on Friday triggered a slump of the US Dollar Index, buoying the pair higher.

The headline Nonfarm Payrolls (NFP) disappointed markets with 199K figures for December versus 400K forecasts and 249K prior (upwardly revised from 210K). 

However, the Unemployment Rate dropped to 3.9% compared to 4.1% market consensus and 4.2% in November while the U6 Underemployment Rate that fell to 7.3% against November's downwardly revised 7.7%

Worsening virus conditions and continuing US-China tussles continue to keep risk-appetite under check, capping run-away gains in the pair.

Focus remains on U.S. inflation data and appearances from several Federal Reserve officials for direction.

U.S. inflation figures are due on Wednesday, with headline CPI expected to climb to a red-hot 7% year-on-year.

The report is likely to show core inflation climbing to its highest in decades at 5.4% and usher in a rate rise as soon as March.

A raft of Fed speech is due this week, including Chair Jerome Powell and Governor Lael Brainard who are set to confirm their nominations as chair and deputy chair at the Fed.

Technical Analysis:

- AUD/USD holds 200-week MA support

- Recovery finds stiff resistance at daily cloud and 21-EMA

- RSI is below the 50 mark, Stochs have rolled over from overbought levels and are biased lower

- GMMA indicator shows major trend is bearish, while minor trend has turned flat

Major Support and Resistance Levels:

Support - 0.7170 (200-week MA), Resistance - 0.72 (21-EMA)

Summary: AUD/USD finds stiff resistance at 0.72 mark (nearly converged cloud and 21-EMA). Decisive break above will fuel further upside.