AUD/USD consolidates week's gains near mid-0.76s

• DXY edges higher toward 94 in the last session of the week.
• AUD/USD fails to break above the 0.77 mark.
• The pair is still up more than 150 pips on the week.

After refreshing its highest level since November 10 at 0.7694, the AUD/USD pair lost its momentum and started to retrace its gains in the NA session. As of writing the pair was trading at 0.7643, down 0.3% on the day.

Aussie outperforms its rivals

Despite today's fall, the pair is looking to record its biggest weekly gain in more than four months. The robust gains witnessed in copper prices and a stronger-than-expected employment growth in Australia were the primary catalysts behind the aussie's strength this week. 

• Yield spreads to chip away at AUD/USD but commodities more supportive – Westpac

On the other hand, the US Dollar Index, which advanced to a new multi-week high at 94.21 earlier in the week, failed to extend its gains and fell sharply on Wednesday after the FOMC disappointed the markets by not delivering a hawkish message as investors hoped. After falling all the way to 93.28 on Thursday, the DXY finally gained some traction on Friday and is now looking to close the week virtually flat near the 93.90 mark.

With the Fed meeting out of the way, markets are now focusing on the tax bill. The latest headlines suggest that Republicans are moving closer to legalizing their highly-anticipated tax reform. Republican Senator Marco Rubio, who voiced his opposition to the bill on Thursday, is going to vote 'yes' following changes to child tax credits according to a couple of news outlets from the United States. The greenback could receive some extra boost in coming days if Republicans continue to push hard to get the bill before President Donald Trump before the end of the year.

Technical levels to consider

The first hurdle for the pair aligns at 0.7710 (200-DMA) ahead of 0.7780 (100-DMA) and 0.7835 (Oct. 23 high). On the downside, supports could be seen at 0.7630 (50-DMA), 0.7585 (20-DMA) and 0.7500 (psychological level). The RSI indicator on the daily chart turned south towards the 50 mark recently, suggesting that the bullish pressure is fading away.