FxWirePro: AUD/USD struggles to extend recovery, mixed Aussie employment figures fail to provide support

AUD/USD chart - Trading View 

AUD/USD is struggling to extend early gains after mixed Aussie employment figures for January amid mixed risk catalysts.

A bigger-than-expected drop in Australia's jobless rate fails to draw stronger bids for as the economy added 29.1K jobs in January versus expectations for 40K additions.

Further, a weaker-than-expected Participation Rate of 66.1% confirmed the RBA’s worries for the job sector.

Market sentiment remains cautious ahead of China’s return after the week-long Lunar New Year holidays. 

According to a Reuters report, Pfizer says South African variant could significantly reduce vaccine protection, a potential blow for risk appetite

Technical bias for the pair is bullish. The pair has halted weakness on Wednesday's trade with a Doji formation.

Dips have held support at 200H MA and momentum is with the bulls. Pullbacks are likely to be shallow. Resumption of upside will see test of 88.6% Fib at 0.7836. 

On the flipside, retrace below 50-DMA (0.7670) and cloud support will drag prices lower.