FxWirePro: AUD/ USD downside pressure builds, key support level in focus

• 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