Catches Bid Ahead Of Employment Data

A down day for USD as the smooth inauguration of President Biden in the US saw safe haven currencies sold off while commodity currencies and equity markets were in vogue.

• AUD/USD touched 0.7661 in US hours, but pulled back to close at 0.7747. The pair has caught an extra bid in early Asia, last up 9 pips at 0.7756 having retreated from session highs at 0.7764.
• Data showed that shipments from Australia including Port Hedland rose to 17.3 million tons in the week to Jan. 15, up from 16.2 million tons the prior week, according to data from Global Ports. BHP and Rio Tinto have both revised 2021 guidance higher, which markets have interpreted as a signal for strong demand (especially from China).
• AUDUSD continues to trade below the recent high of 0.7820 from Jan 6. Although the uptrend remains intact, there is a risk the pair will retrace lower short-term in a move that would be considered a correction. This would allow an overbought condition to unwind. The pair Monday probed key support of 0.7666. A clear break would expose 0.7600 and below. On the upside, clearance of 0.7820 would confirm a resumption of the uptrend instead.
• Markets will look ahead to Australian December employment data at 0030GMT/1130AEDT. The pace of job additions is expected to have slowed to 50k from 90k in December, according to Bloomberg estimates, as the country dealt with a Covid-19 outbreak during the month and imposed stricter containment measures.