AUD/USD slides further, back below 200-DMA important level

The AUD/USD pair remained heavily offered through early European session and has now broken below the key 200-day SMA support to currently trading at a 3-day low near 0.7540 region. 

Today's cautious RBA meeting minutes, showing growing concern around jobs / housing markets, continues to weigh on the Australian Dollar. This coupled with bearish sentiment surrounding commodity space, especially copper, did little to extend any support and stall the heavily offered tone surrounding the major.

Meanwhile, a fresh bout of global risk aversion trade, in wake of rumors of a snap general election in the UK, further drove flows away from riskier / higher-yielding currencies - like the Aussie. 

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Meanwhile, a subdued greenback price action, with the key US Dollar Index stuck in a range around 100.20-25 region might extend some immediate support and limit further downslide, at least for the time being. 

Later during the NA session, the release of housing market and industrial production data from the US would now be looked upon for some fresh impetus. Meanwhile, broader market risk sentiment might also contribute towards driving the pair's movement on Tuesday.

Technical outlook

"Pair’s close below 200-DMA level of 0.7555 would - Signal that a corrective move from the low of 0.7473 has run out of steam at a high of 0.7612, keep the falling top formation intact & add credence to the daily RSI’s turn lower from the 50.00 levels. Thus, doors would be opened for a re-test of 0.7473 levels. On the higher side, only a daily close above 0.7612 would signal continuation of the rally from the low of 0.7473 and could yield a rally to 0.7681 (Mar 30 high) - 0.77 (zero levels)" writes Omkar Godbole, Analyst and Editor at FXStreet.