AUD/USD spikes after US nonfarm payrolls

FXstreet.com (Córdoba) - The AUD/USD spiked to the 0.8950 area from near 0.8900 after nonfarm payrolls showed the US economy added fewer jobs than expected in December.

The US economy added just 74,000 new jobs in December, the smallest increase since the start of 2011, while the unemployment rate fell to 6.7% from 7.0%, probably because more people dropped out of the labor force. The AUD/USD jumped to a daily high of 0.8945, although as it usually happens, the pair has retraced most of its initial gains. At time of writing, the AUD/USD is trading at the 0.8910 area, still up 0.1% on the day.

AUD/USD technical levels

In terms of technical levels, the AUD/USD could face immediate resistances at 0.8951 (Jan 8 high) and 0.8970 (Jan 7 high) ahead of 0.9000 (psychological level). On the flip side, supports are seen at 0.8864 (Jan 9 low) and 0.8842 (Jan 2 low) ahead of 0.8820 (Dec 18 low).

US: Average Hourly Earnings up 0.1% in December

The US Average Hourly Earnings increased by 0.1% in December, following a 0.2% rise in November, the US Department of Labor reported today. Analysts expected a 0.2% increase. On an annual basis Average Hourly Earnings rose by 1.8%, down from 2%.
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GBP/USD recovers losses following Non Farm Payrolls crash

GBP/USD has performed a U-Turn today, recovering its earlier losses following the awful Non Farm Payrolls reading.
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