AUD/USD takes back some daily losses

The US dollar pulled back during the European session, allowing AUD/USD to take back some of its recent losses.

AUD/USD managed to recover from a low of 0.7505 and climbed back above the 100-day SMA, although it continues to trade in negative ground for the day. At time of writing, the pair is trading at 0.7540, 0.2% below its opening price.

Despite a pullback, the dollar remains among the strongest currencies across the board amid firming expectations of another rate hike by the Fed in the upcomings meetings. Yesterday’s FOMC meeting minutes showed policymakers remain split on whether the central bank should tighten policy further. 

Recent data had virtually no impact on the dollar, even though it showed US jobless claims remained at a 4-decade low of 246,000 in the week ended Oct 7.

AUD/USD levels to consider

As for technical levels, next supports are seen at 0.7505 (Oct 13 low), 0.7475 (Sep 16 low) and 0.7441 (Sep 13 low). On the other hand, resistances could be faced at 0.7598/0.7600 (10-day SMA/psychological level), 0.7690 (Oct 4 high) and 0.7731 (Sep 8 high).