AUD/USD struggles at 0.7300 on broad US dollar weakness

• The market sentiment is downbeat, as witnessed by falling US stock indices.
• The Fed's bond taper prospects, inflation, and Evergrande's crises tempered investor sentiment.
• On Tuesday, the Reserve Bank of Australia will reveal its monetary policy statement.

Early in the Asian session, the AUD/USD dipped to a daily low of 0.7259 but staged a comeback, is trading at 0.7284 for a 0.36% gain during tie day at the time of writing.

The market sentiment is downbeat, as can be witnessed by falling US stock indices. The Dow, the S&P 500, and the Nasdaq Composite record losses of 1.06%, 1.43%, and 2.37%, respectively. Meanwhile, the US Dollar Index, which tracks the greenback's performance against six peers, is down 0.30%, sitting at 93.79.

The main factors driving the sentiment are the Fed's bond tapering prospects, inflationary pressures, and Evergrande's crisis, threatening to expand into the Chinese economy.

Putting this aside, in the Australian economic docket, it is absent on Monday. On the other hand, the US economic docket featured the Factory Orders for August, which rose by 1.2% more than 0.9% foreseen by analysts, trailed by the July reading, upwardly revised by 0.7%.

On Tuesday, Australia will release the Commonwealth Bank Services PMI for September and the AIG Performance of Construction Index on the macroeconomic front. Further, the Trade Balance and Inflation readings will prepare the center stage for later when the Reserve Bank of Australia releases its monetary policy decision, due at 03:30 GMT

See more: RBA Preview: Forecasts from eight major banks, fairly low surprise potential

AUD/USD Price Forecast: Technical outlook

The AUD/USD is is in a downtrend with the daily moving averages (DMA's) above the spot price. However, the Aussie is approaching the 50-day moving average (DMA) that lies at 0.7309. A daily close above the latter could open the door for further gains. The first resistance would be the psychological 0.7300. A decisive break of that level would expose the 100-DMA at 0.7446, but it will find some hurdles on the way up. Immediate support emerges at 0.7350, followed by 0.7400.

On the other hand, failure at 0.7300 would exert downward pressure on the AUD/USD pair. The first demand zone would be 0.7250. A breach of that level could expose the September 30 low at 0.7169, followed by the August 20 low at 0.7105.

The Relative Strength Index (RSI) is at 49, heading slightly up, supporting the upside bias, but caution is warranted as long as it stays underneath the 50-midline, suggesting that downward pressure remains.

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