- AUD / USD has once again been hit by the bearish RBA minutes and comments from Kent.
- USD bulls hold firm as hopes for US fiscal stimulus fade.
- The focus is on the September lows of 0.7006, despite the rally in US equity index futures.
The pair AUD / USD is extending its four-day losing streak on Tuesday, seeking to threaten the September low of 0.7006 while falls to three-week lows near the 0.7030 level.
The expectations of a rate cut in November or an expansion in bond buying have increased after Reserve Bank of Australia Deputy Governor Dr. Chris Kent and minutes from the October meeting suggested further easing is expected.
Further pushing the decline in the pair, the US dollar maintains the rebound of the previous day, as Hopes for a Possible US Fiscal Stimulus Deal Before Elections Fade despite the rapprochement of the differences between the Speaker of the House of Representatives, Nancy Pelosi, and the Secretary of the Treasury, Steve Mnuchin.
The slower than expected expansion in the Chinese economy it also remains a cause for concern for the AUD bulls. The AUD / USD pair remains exposed to more downside risks heading into the US fiscal stimulus deadline on Tuesday. The rally in S&P 500 futures did little to help the higher-yielding Australian dollar amid market jitters.
AUD / USD technical perspective
The bears are now targeting the September low of 0.7006, with the next support seen at 0.6985 (daily Pivot Point S3 support). On the upside, 0.7074 / 80 (Daily Pivot Point and 5-day SMA) is the level that the bulls must beat to target 0.7100.
Credits: Forex Street
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