Australian Dollar declines as China's outlook weighs

• AUD/USD declines as Chinese stimulus concerns weigh on market sentiment.
• Risk-perceived currencies are also under pressure due to rising Oil prices and the Israel conflict.
• RBA Meeting Minutes gave some dovish insights on the RBA's stance.

The AUD/USD declined by 0.60% to 0.6725 in Tuesday's session, influenced by China's uncertain economic outlook. A leading Chinese official failed to go into detail about the size or parameters of the government's upcoming stimulus measures, which worried investors and sent the Chinese stock market reeling.

Despite the uncertainties surrounding the Australian economy, the Reserve Bank of Australia (RBA) signaled a dovish tone in the release of its latest minutes, which fueled bets of an initial cut in December.

Daily digest market movers: Australian Dollar slips after RBA minutes, China outlook

• Regarding the RBA minutes, during the September 24 meeting, the RBA kept the cash rate target steady at 4.35% and maintained its neutral stance.
• However, the minutes revealed a more dovish tone as the central bank removed the August meeting's statement that "a reduction in the cash rate target was unlikely in the near term."
• Notably, RBA Deputy Governor Hauser dismissed the characterization of the minutes as dovish, emphasizing that the task of reducing inflation is "not finished yet."
• Markets currently place around 50% odds on a 25 bp rate cut by December.
• On the Fed's side, markets eased on the aggressive dovish bets and provided some relief to the Greenback.
• This week's Consumer Price Index (CPI) reading will be important.

AUD/USD technical outlook: Aussie pair under bearish momentum, must hold 0.6700

The AUD/USD pair has been trading with a strong downward bias in the last few sessions. The Relative Strength Index (RSI) is in the negative area of the map and is declining sharply. The RSI value of 40 suggests that selling pressure is rising. The MACD is also bearish with the histogram declining and red.

The overall technical outlook is bearish, and the pair might use supports at 0.6700, 0.6650 and 0.6600. On the other hand, it has resistance at 0.6800, 0.6850 and 0.6900.