The Australian dollar accelerated lower in Asia on Tuesday (down 0.5% for the session) as minutes of RBA most recent meeting showed that the central bank discussed further monetary easing through cutting interest rate towards zero and buying longer-dated government bonds.
Fading risk mode on record coronavirus infections in the Europe and stalled US stimulus talks, inflate US dollar and add pressure to the Aussie dollar.
The pair extends steep descend into sixth straight day and increase pressure on key 0.70 support zone (25 Sep low / psychological) with firm break here to signal deeper correction of larger Mar-Sep 0.5509/0.7413 uptrend.
Rising negative momentum and moving averages in bearish setup on daily chart, support the action, but oversold stochastic warns that bears may take a breather before final push through 0.70 zone supports.
Upticks are expected to provide better selling opportunities and should be ideally capped by broken 100DMA (0.7100).
Sustained break of 0.70 pivot would expose targets at 0.6964/20 (Fibo 23.6% of 0.5509/0.7413 / early July higher base).
Res: 0.7070, 0.7087, 0.7100, 0.7122
Sup: 0.7025, 0.7005, 0.6964, 0.6920
