Australian Dollar retreats from weekly highs despite upbeat job figures

• Pair slips to 0.6230 on Thursday by nearly 0.30%.
• Early gains fade after strong Australian employment data.
• Diminished tariff risks and risk-on mood cushion the downside.

AUD/USD faced rejection near 0.6250 and fell to 0.6230 in Thursday trading, paring initial gains spurred by Australia's mixed labor report. A more optimistic market mood helped by reduced anxiety over potential tariff disruptions limits deeper losses. Still, the pair remains under scrutiny as investors monitor the Reserve Bank of Australia's (RBA) policy direction and the US Dollar's movements, which trades weak after mid-tier data.

Daily digest market movers: Aussie rotates lower as traders assess fresh local labor data

• The Australian Bureau of Statistics revealed a 53.6K employment increase in December, handily beating the 15K forecast and the prior 28.2K.
• The Unemployment Rate edged up to 4.0%, matching estimates, from 3.9%.
• Markets now see a 67% chance the RBA will slash its Official Cash Rate by 25 basis points to 4.10% in February, with further easing likely by April.
• The US Dollar remains range-bound as investors weigh near-term catalysts, including potential shifts in fiscal and trade policies under President-elect Trump.
• On the data front, Retail Sales for December posted a 0.4% monthly advance, missing the 0.6% forecast and below the prior 0.7% (revised to 0.8%).
• Initial Jobless Claims rose to 217K for the week ending January 10, while the prior 201K reading was revised to 203K.
• The CME FedWatch Tool shows that markets are pricing in that the Federal Reserve will keep rates steady in January with inflation uncertainties tied to the incoming Trump administration.

AUD/USD technical outlook: Pair slips below 0.6250, testing 20-day moving average

The AUD/USD declined 0.30% to 0.6230 on Thursday, retreating from a one-week peak. The Relative Strength Index (RSI) sits near 48, gradually easing in negative territory. The Moving Average Convergence Divergence (MACD) histogram shows rising green bars, hinting at lingering bullish attempts.

Although the pair backed off after briefly trading above its 20-day Simple Moving Average (SMA), the ability to hold near this key threshold could signal emerging support.