AUD/USD slides further below 0.7300 mark, lowest since November 2020

The AUD/USD pair lost some additional ground heading into the European session and tumbled to the lowest level since November 2020, around the 0.7280 region in the last hour.

The pair added to the overnight losses and witnessed heavy selling through the early part of the trading action on Tuesday. The risk-off impulse in the markets drove some haven flows towards the US dollar, which, in turn, was seen as a key factor that dragged the AUD/USD pair lower for the second successive day.

Disappointing Chinese macro data on Monday added to worries about the potential economic fallout from the fast-spreading Delta variant of the COVID-19. This, along with political tension in Afghanistan, took its toll on the global risk sentiment and weighed on perceived riskier currencies, including the Australian dollar.

The aussie bulls failed to gain any respite from Tuesday's release of balanced RBA monetary policy meeting minutes. The market focus now shifts to the monthly Retail Sales figures, due later during the early North American session. Apart from this, Fed Chair Jerome Powell's speech might provide some impetus to the AUD/USD pair.

Nevertheless, the latest leg down now seems to have validated a bearish break below support marked by the lower boundary of a trading range held over the past one week or so. A subsequent fall below the previous YTD lows now seems to set the stage for a further near-term depreciating move for the AUD/USD pair.

Technical levels to watch