FxWirePro: AUD/USD fails to extend employment data led gains, focus on China data dump

• AUD/USD fails to extend employment data led gains, edges lower from session highs at 0.7994 to currently trade at 0.7963 levels.
   
• Aussie was hit by mixed Australian jobs data. Australia December employment change beats estimates, but jobless rate ticks higher.
   
• Markets now eagerly await the Chinese Q4 GDP, industrial production and retail sales figures for further impetus.
   
• Upside stalls shy of 0.80 handle, back-to-back spinning top formations at highs raise scope for downside in the pair.
   
• Moreover, USD could remain well bid as the Fed's Beige book (released yesterday) is said to have opened doors for a March rate hike.
   
• RSI and Stochs are at overbought levels with possibility for rollover into neutral zone.
   
• Close below 5-DMA with confirmed rollover from oversold territory on RSI and Stochs could see more downside. Scope then for test of 20-DMA at 0.7843.
   
• Above 78.6% Fib retrace of 0.81250 to 0.75012 fall at 0.7991 we could see some bullishness. Scope then for test of 0.8053 (88.6% Fib).

Support levels - 0.7954 (5-DMA), 0.7886 (61.8% Fib retrace of 0.81250 to 0.75012 fall), 0.7842 (20-DMA)

Resistance levels - 0.7991 (78.6% Fib retrace of 0.81250 to 0.75012 fall), 0.80, 0.8060 (200M SMA)

Recommendation: Watch out for close below 5-DMA for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 111.68 (Bullish), while Hourly USD Spot Index was at -85.4318 (Bearish) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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