AUD/USD plummets to fresh 13-month low near 0.7350

After spending the Asian session in a very tight range a little above the 0.74 mark, the AUD/USD pair came under pressure and dropped to its lowest level since May of 2017 at 0.7348. As of writing, the pair was trading a couple of pips above that level and losing 1% on the day.

Earlier today, the RBA published its minutes from the June meeting, which showed that the bank removed the term "the next move is up" from its statement and weighed on the aussie. “On the global economy, the Minutes note greater uncertainties including: political developments in Italy; developments in some emerging markets; and the ongoing trade tensions,” Westpac analysts noted in a recently published report.

Meanwhile, following yesterday's technical correction, the US Dollar Index gained traction on Tuesday and rose toward the 95 mark as investors remain focused on the diverging monetary policy stances between the Fed and the other major economies' central banks.

At the start of the NA session, building permits and housing starts from the United States will be published. Although these data usually don't have notable impacts on the price action, a positive reading could provide an additional boost to the greenback and force the pair to push lower.

Technical outlook

The immediate support for the pair aligns at 0.7330 (May 9, 2017, low) ahead of 0.7285 (Jan. 6, 2017, low) and 0.7200 (psychological level). On the upside, resistances are located at 0.7435 (daily high), 0.7500 (psychological level) and 0.7540 (50-DMA).