AUD/USD is exploring sub-100-DMA levels

AUD/USD is on the back foot again, despite the rally in the iron ore prices. The currency pair is looking to breach the 100-DMA level of 0.7593.

Fed rate hike bets overshadow iron ore rally

The losses in the Aussie clearly indicate that the focus is on the heightened odds of a steeper Fed rate hike path. The December Fed rate hike bets hover above 80%, which is more than enough for the Fed to hike rates.

Moreover, this is overshadowing the rally in the iron ore prices. AUD has had a strong positive correlation with iron ore prices in the pair.

AUD/USD Technical Levels

Previous two daily candles show buying interest below 100-DMA. Consequently, only a breach of 0.7558 (Oct 28 low) would open doors for a sell-off to 0.7508 (200-DMA). A violation there would expose 0.7442 (Sep 13 low). On the higher side, breach of 50-DMA of 0.7619 would expose 0.7667 (5-DMA) and 0.77 (zero figure).