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  • Dovish sounding RBA meeting minutes exerted some fresh downward pressure.
  • The USD regains some positive traction and added to the intraday selling bias.

The AUD/USD pair refreshed daily lows in the last hour, with bears now eyeing a follow-through weakness below the 0.6750 immediate support zone.
Having posted an intraday high level of 0.6789, the pair met with some fresh supply during the Asian session on Tuesday in reaction to a more dovish tilt from minutes of the latest RBA monetary policy meeting held in October. The central bank showed readiness to ease policy further and also highlighted downside risks to the economy.

A modest USD uptick adds to the selling bias

This against the backdrop of doubt over any breakthrough from the latest round of trade talks between the US and China, coupled with Tuesday’s mixed Chinese inflation figures exerted some additional pressure on the China-proxy Australian Dollar and triggered the initial of the intraday pullback.
Meanwhile, the latest leg of a downtick over the past hour or so could further be attributed to a modest US Dollar rebound. However, a sharp fall in the US Treasury bond yields might cap any strong move up for the Greenback and help limit deeper losses, at least for the time being.
Moving ahead, Tuesday’s relatively thin US economic docket – featuring the release of Empire State Manufacturing Index – will now be looked upon for some short-term trading impetus later during the early North-American session.

Technical levels to watch