AUD/USD confirms a break below 50-DMA important support

Extending its weakness below 50-day SMA, the AUD/USD pair fell further below 0.7600 handle and has now dropped to the lowest level since September 21.

Currently trading around 0.7585-80 band, the pair on Wednesday failed to benefit from upbeat Australian monthly retail sales data and seesawed between positive and negative territory amid broad based greenback strength on the back of solid US ISM services PMI for September, which negated ADP-led disappointment.

Wednesday's US economic releases did little to change market expectations over the timing of next Fed rate-hike action with CME group's FedWatch Tool still pointing to over 50% probability of such an action in December. The greenback, however, continued gaining traction, dragging the pair to a fresh two week low ahead of this week's key event risk, monthly jobs data from the US, which would help investors determine the next leg of directional move for the pair. 

In the meantime, today's release of weekly jobless claims, later during NA session, might provide some immediate trading opportunities momentum play for short-term players. 

Technical levels to watch

From current levels, 0.7565 level seems to protect immediate downside below which the pair is likely to aim towards testing 100-day SMA support near 0.7515 region with a weak intermediate support near 0.7540-35 region. 

On the flip side, any up-move back above 0.7600 handle might now confront resistance at 50-day SMA near 0.7610 region, which if cleared is likely to boost the pair beyond session high towards 0.7640-45 resistance area.