• AUD/USD hit fresh two month low on Tuesday as rising dollar and weaker commodities price weighed on Australian dollar.
• Iron ore futures declined on Tuesday, giving up gains from the previous session as uncertainty about China’s fiscal stimulus plans weighed on the market.
•Investors awaited third-quarter consumer inflation data due on Wednesday. Analysts expect headline inflation to have eased to 2.9% last quarter
•At GMT the pair 05:58 slipped 0.26% to hit $0.6563, the lowest level since mid-August, after falling 0.3% overnight
• Technical highlight downside risks for AUD/ USD, with momentum studies, 5, 10 and 21 DMAs tracking south.
• Immediate resistance is located at 0.6588 (Daily high), any close above will push the pair towards 0.6626 (38.2%fib).
• Support is seen at 0.6559(23.6%fib) and break below could take the pair towards 0.6545 (Lower BB).
Recommendation: Good to sell around 0.6570 , with stop loss of 0.6650 and target price of 0.6500
