AUD/USD fails to continue winning streak despite strong Aussie Employment data

• AUD/USD falls as three-day winning streak concludes despite upbeat Aussie labor market data.
• The Aussie economy added 53.6K workers in December, while the jobless rate accelerated.
• Investors await the US Initial Jobless Claims and the Retail Sales data.

The AUD/USD pair declines after failing to extend a three-day winning streak above the key resistance of 0.6245 in Thursday's European session. The Aussie pair falls even though the Australian employment data for December has come in stronger than expected.

The Australian Bureau of Statistics (ABS) reported that the economy added 53.6K workers, surprisingly higher than 28.2K in November. Economists expected the labor demand to have remained weak and projected a fresh addition of 15K workers. The Unemployment Rate rises to 4.0%, as expected, from 3.9% in November.

Typically, signs of robust Australian labor demand remain unfavorable for the Reserve Bank of Australia's (RBA) dovish bets. Currently, traders roughly price in a 67% chance that the RBA will lower its Official Cash Rate by 25 basis points (bps) to 4.10% in February, with a full rate cut expected by April.

Meanwhile, the US Dollar (USD) wobbles in a tight range with investors awaiting the United States (US) Initial Jobless Claims for the week ending January 10 and the Retail Sales data for December, which will be published at 13:30 GMT.

Investors expect individuals claiming jobless benefits for the first time were higher at 210K, compared to 201K in the week ending January 03. The Retail Sales data, a key measure of consumer spending, is estimated to have grown by 0.6%, slower than 0.7% in November.

The Retail Sales data will influence market expectations for the Federal Reserve's (Fed) monetary policy outlook. Currently, traders expect the Fed to deliver 25-bps interest rate reduction in June, according to the CME FedWatch tool.