AUD/USD approaches 4-month lows below mid-0.76s

• The RBA-inspired drop continues in the NA session.
• The pair's daily loss increases to 60 pips as the greenback preserves strength.
• Weak commodity performance weighs on the aussie as well.

Following a spike up to the 0.77 handle during the Asian trading hours, the AUD/USD pair lost its momentum and turned negative on the day as the RBA statement triggered an aussie sell-off. After dropping to the mid-0.76s, the pair went into a consolidation phase before it came under pressure in the early NA session. At the moment, the pair is trading at 0.7635, losing 0.7% on the day.

RBA is concerned over stronger AUD

Although the Reserve Bank of Australia decided to leave the cash rate unchanged at 1.50% as expected, Governor Stevens' statement highlighted their concerns over a stronger AUD, which could slow down the economic growth. Nonetheless, there were no significant revisions to last month's statement, and it was enough for investors to continue selling their AUDs against the buck. 

• RBA remains on hold - Westpac

On the other hand, after making a technical correction toward the mid-94s, the US Dollar Index gained traction on Tuesday and advanced towards the 95 handle. Today's data from the United States, IBD/TIPP Economic Optimism Index, and JOLTS Job Openings, both came in above the markets' estimates, allowing the greenback to hold on to its daily gains. At the moment, the DXY is 94.95, up 0.35% on the day. 

• US: Number of job openings was little changed at 6.1 mln in September
• US: Economic Optimism Index rises across every category in November - IBD/TIPP

Meanwhile, crude oil prices are struggling to build on Monday's gains, not allowing the commodity-sensitive currencies like the AUD retrace its losses.

Federal Reserve Chair Janet Yellen is scheduled to deliver a speech later in the session but she is not expected to deliver any comments on the monetary policy, leaving the pair at the mercy of the DXY in the remainder of the day.  

Technical levels to consider

On the downside, 0.7625 (Oct. 27 low) aligns as the first support ahead of 0.7570 (Jul. 7 low) and 0.7500 (psychological level). On the upside, 0.7700 (psychological level/200-DMA/daily high) remains as a critical resistance. Only a decisive break above this level could open the door for further gains towards 0.7750 (20-DMA) and 0.7830 (Oct. 23 high).