AUD/USD gives back daily gains on strengthening USD, trades flat near 0.7660

• AUD/USD loses momentum ahead of 0.77.
• Greenback edges higher above 93 on tax bill hopes.
• US 10-year T-bond yield is up nearly 2%. 

The AUD/USD pair, which advanced to its best level since last Friday at 0.7683 during the European trading hours, came under pressure in the early NA session and retraced its daily gains. As of writing, the pair was trading at 0.7655, down 0.1% on the day.

The pair's price action continues to be driven by the DXY on Tuesday. The US Dollar Index, which had been consolidating in a tight range above the 93 mark since the start of the day,  advanced into the positive territory in the early NA session as the decisive rise seen in the US T-bond yields ramped up the demand for the buck. At the moment, the yield on the 10-year T-bond is at up 1.9% at 2.437%, its highest level in more than two months. The DXY meanwhile, is recording small gains at 93.25.

On the other hand, copper's recent rally, which allowed the commodity-sensitive aussie to outperform its peers last week, lost its strength this week, capping the pair's attempts on the upside.

With the economic calendar lacking significant data releases, investors will be looking for fresh headlines surrounding the tax bill developments in the U.S. The buck could push higher if the US House approves the tax overhaul legislation later today.

Technical outlook

The pair could encounter the initial hurdle at 0.7715 (200-DMA) followed by 0.7770 (100-DMA) and 0.7835 (Oct. 23 high). On the downside, supports are located at 0.7625 (50-DMA), 0.7585 (20-DMA) and 0.7500 (psychological level). The RSI indicator on the daily chart is drifting lower toward the 50 mark, suggesting that the bullish pressure is fading away.