AUD/USD inter-markets: seems vulnerable to slide further

After failing to reclaim 0.7700 handle, the AUD/USD pair reversed sharply and has now decisively broken below 50-day SMA strong support to currently trade at the lowest level since September around 0.7570 region.

Sliding commodity prices, especially Copper, has been the key factor weighing on the commodity-linked currency - Aussie. Moreover, a sharp rebound in the US and Australian 10-years Treasury bond yields, coupled with increasing prospects of an eventual Fed rate-hike decision by the end of this year, have further contributed to the pair's latest leg of downslide from 0.7700 neighborhood.

Market participants remain focused on Friday's release of monthly jobs report from the US, popularly known as NFP, in order to gauge the timing of next Fed rate-hike action. The CME group's FedWatch Tool suggests that markets are currently pricing-in around 55% chances of such a move in December. Hence, stronger headline NFP print would further increase the probability and would be highly supportive for the US Dollar, which would eventually dent demand for higher-yielding currencies - like Aussie. 

Even from technical perspective, the pair is sustaining its weakness below 50-day SMA and thus, remains vulnerable to extend its depreciating move towards 100-day SMA support near 0.7515 region.