AUD/USD extends RBA minutes-led slide, drops to test 200-DMA support

The AUD/USD pair extended RBA minutes led sharp reversal move and has now dropped back to the very important 200-day SMA near 0.7555-60 band. 

Spot came under intense selling pressure after the RBA minutes released earlier during the day revealed growing concern around jobs, housing market. The central bank warned that risks associated with the housing market appeared to be growing and warranted careful monitoring over coming months. The minutes were perceived as dovish, with the Australian dollar taking a tumble following the minutes.

   •  RBA minutes: Labour market somewhat weaker than expected

Meanwhile, the prevalent bearish sentiment surrounding commodity space, especially copper, further weighed on commodity-linked currencies - like the Aussie, and also collaborated to the offered tone surrounding the major. 

With today's sharp slide, the pair has now reversed all of its gains recorded in the previous two trading session and also confirmed a strong supply zone near the 0.7600-0.7610 region. 

Today's US economic docket, featuring - housing market and industrial production data, would now be looked upon for some fresh impetus during early NA session. 

Technical levels to watch

On a sustained weakness below 0.7555-50 region (200-day SMA), the pair is likely to extend the slide towards 0.7525 horizontal support ahead of the key 0.75 psychological mark.

Meanwhile on the upside, any recovery move now seems to confront strong resistance near 0.7585-90 area, above which the pair is likely to aim towards testing 50-day SMA hurdle near 0.7620 region before targeting its next major hurdle near 0.7665-70 zone.