AUD/USD slammed below 0.7500 mark

The AUD/USD pair remained well offered and broke below the very important 200-day SMA support to hit the lowest level since Sept. 19 amid broad based US Dollar strength. 

Currently trading below 0.7500 mark, increasing odds of imminent Fed rate-hike action continues to undermine higher-yielding currencies - like Aussie. Market expectations was further reinforced by comments from FOMC member James Bullard that one rate-hike was possible in Dec. and eventually attracted fresh selling pressure around the major. 

Meanwhile, the prevalent weakness in commodity prices, especially Copper is further denting demand for commodity-linked currencies and contributing to the bearish sentiment surrounding the major. 

Later during NA session, Producer Price Index (PPI) and second-tier manufacturing data - industrial production and capacity utilization rate, from the US would be looked upon for immediate respite ahead of Australian jobs report during early Asian session on Thursday. 

Technical levels to watch

From current levels, the momentum is likely to drag the pair towards 0.7480 level below which the slide is likely to get extended towards 0.7450 horizontal support. On the upside, recovery back above 0.7500 handle, leading to a momentum back above 0.7510 (200-day SMA), is likely to trigger a near-term short-covering rally towards 0.7540 horizontal resistance.

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