The Australian dollar gained renewed momentum after Friday’s Non-Farm payrolls report showed job hiring was a touch weaker than expected last month.
According to the U.S. Bureau of Labor Statistics, on Friday, the December’s payroll and wage growth missed expectations, with the Non-Farm payrolls adding 145,000 jobs across the country in December, short of the 162,000 that economists forecast, while the unemployment rate remained steady at a 50-year low 3.5%.
The AUD/USD pair closed the week near the intraday highs of US$0.6910.
Geopolitics remained on the radar over the weekend, with Iran admitting it downed a Ukrainian jet after mistaking it for a cruise missile.
Meanwhile, the U.S. and China are still expected to sign the first phase of their trade deal, which President Donald Trump said will take place on Wednesday.
After nearly three years of tweets, self-proclaimed “Tariff Man”, President Trump now looks to this Wednesday’s signing of the so-called “Phase-One” deal that includes protections for American intellectual property, food and farm goods, financial services and not manipulate its currency.
China’s Vice Premier Liu He, head of the country’s negotiation team in China arrives in Washington on Jan. 13-15 and will attend on signing the agreement.
From a technical standpoint, a decisive break of US$0.6845 would see an extension to the bearish sentiment and expose the region of US$0.6770. Resistance comes in at US$0.6915, then at US$0.6955, firmer.