AUD/USD Price Analysis: Slides further below 50-day EMA near 0.6750

• AUD/USD falls further below 0.6750 amid weakness in the Australian Dollar.
• The RBA minutes didn't offer any significant cues about the likely interest rate action for the remaining year.
• The outlook of the US Dollar will be influenced by the US CPI data for September.

The AUD/USD pair extends its losing streak for the fourth trading day on Tuesday. The Aussie asset declines to near 0.6720 as the Australian Dollar (AUD) weakens after the release of the Reserve Bank of Australia (RBA) minutes, which didn't offer any significant cue about the likely interest rate action in the November meeting.

The RBA minutes showed that policymakers discussed scenarios for hiking interest rates or pivoting to policy normalization. However, the board remained vigilant to upside risks to inflation. Currently, financial markets expect the RBA to leave its Official Cash Rate (OCR) unchanged at 4.35% by the year-end.

Meanwhile, an absence of details about the likely size of Beijing's recently unveiled stimulus package has also dampened the Australian Dollar's appeal, being a proxy to China's economic growth.

In the North American region, the US Dollar (USD) has turned sideways after revisiting a seven-week high as investors await fresh cues about the Federal Reserve's (Fed) possible monetary policy action in the remainder of the year. According to the CME FedWatch tool, the Fed is expected to cut interest rates further by 25 basis points (bps) in each of its remaining two policy meetings this year.

AUD/USD sees a sharp downside after a breakdown below the upward-sloping trendline plotted from the August 5 low around 0.6350. The Aussie asset slides below the 20- and 50-day Exponential Moving Averages (EMAs), which trade around 0.6800 and 0.6750, respectively.

The 14-day Relative Strength Index (RSI) slides to near 40.00, suggesting a weakening of momentum.

The pair could witness more downside towards the 200-day EMA near 0.6660 and the August 12 high of 0.6605 if it breaks below the round-level support of 0.6700.

In an alternate scenario, a decisive recovery move above the 20-day EMA at 0.6800 could push the asset towards October 4 high of 0.6850, followed by October 3 high of 0.6888.

AUD/USD daily chart