FxWirePro: AUD/USD tests trendline support at 0.7180, outlook bearish

Chart - Courtesy Trading View 

AUD/USD was trading 0.48% lower on the day at 0.7188 at around 05:10 GMT.

The pair has snapped two straight sessions of gains and has slipped lower amid risk-off mood across markets.

Disappointing US employment-related figures dented the US dollar overnight, supporting the pair higher.

Weekly US unemployment claims unexpectedly jumped to 286K in the week ended January 7, the highest reading since late in October as the country struggling with Omicron-related disruptions.

The global risk sentiment took a hit early Froday amid expectations that the Fed will tighten its policy at a faster pace than anticipated. 

Markets have fully priced in an eventual Fed lift-off in March and a total of four hikes in 2022.

Major focus remains on the FOMC monetary policy meeting on January 25-26 for clearer signals about the likely timing for rate hikes.

Technical backdrop also seems tilted in favour of bearish traders and supports more downside in the pair.

Price action is currently holding support at major rising trendline. Break below will plummet prices further. 200-week MA is strong support at 0.7167. Watchout for break below for major weakness.