AUD/USD remains in red near mid-0.78s despite dismal NFP data

• NFP falls short of expectations with a 148K increase.
• Unemployment in the U.S. remains unchanged at 4.1%.
• DXY fins support near mid-91s.

The AUD/USD pair, which spiked up to a fresh daily high at 0.7870 with the knee-jerk reaction to the employment report from the United States, failed to preserve its bullish momentum. As of writing, the pair was trading at 0.7847, down 0.22% on the day.

The critical macroeconomic data release of the day showed that the nonfarm employment in the United States increased by 148K in December and missed the market estimate of 190K. On a positive note, however, the unemployment rate stayed unchanged at 4.1%, and November's NFP reading got revised up to 252K from 228K. Furthermore, the 0.3% increase seen in the monthly average hourly earnings came in line with the experts' expectations.

After quickly dropping to 91.50, the US Dollar Index easily reversed its direction and returned to pre-data levels. At the moment, the index is up 0.15% on the day at 91.75. 

The ISM is going to release the Non-Manufacturing PMI at the top of the hour, and later in the session, FOMC members Harker and Mester will be delivering speeches.A hawkish tone could help the DXY extend its recovery toward the 92 handle, and a weekly close above that level could point to further greenback strength in the short-term.

Technical levels to consider

The immediate resistance for the pair aligns at 0.7870 (daily high) ahead of 0.97965 (Sep. 24 high) and 0.8000 (psychological level). On the downside, supports could be seen at 0.7815 (Jan. 4 low), 0.7740 (100-DMA/200-DMA) and 0.7650 (Dec. 21 low).