- AUD/USD remains depressed amid a modest pickup in the USD demand.
- The RBA meeting minutes failed to provide any respite for bullish traders.
- The coronavirus-led slowdown in Chinese economy weighed on the aussie.
The AUD/USD pair remained depressed through the Asian session on Tuesday and dropped to fresh 11-year lows, around the 0.6065 region in the last hour.
The pair witnessed some follow-through selling on Tuesday and extended the previous session’s rejection slide from the 0.6300 round-figure mark, touched in reaction to the Fed’s aggressive move to cut interest rates to zero.
The bearish pressure remains unabated
As investors looked past the US central bank’s emergency decision, a modest rebound in the US Treasury bond yields helped revived the US dollar demand and turned out to be one of the key factors exerting some pressure on the major.
Meanwhile, the latest RBA meeting minutes showed that policymakers were ready and willing to act. The minutes further indicated a move towards the bond purchases rather than any further interest rate cut, albeit did little to impress bulls.
Apart from a modest USD strength, concerns about a sharp economic slowdown in China – primarily on the back of the coronavirus outbreak – further undermined the China-proxy Australian dollar and collaborated to the pair’s weaker tone.
Given oversold conditions on short-term charts, it will be interesting to see if the pair is able to find any support at lower levels or continues with its two-week-old bearish trajectory as investors await fresh developments surrounding the coronavirus saga.
Later during the early North-American session, the US economic docket – highlighting the release of monthly retail sales figures – might influence the USD price dynamics and produce some meaningful trading opportunities on Tuesday.
Technical levels to watch