The Australian dollar came under pressure in the Asian session on Tuesday amid worsening investor sentiment, as higher commodity prices stoked concerns about inflationary pressures.

Oil prices rose after the OPEC and allies agreed to stick to its previous decision to increase production gradually.

Concerns over China's property sector continued after Fantasia Holdings failed to make $205.7 million payment that was due to bondholders on Tuesday.

U.S. debt ceiling showdown also weighed after President Joe Biden blamed Republicans for not supporting Democratic attempts to raise the ceiling by the October 18 deadline.

Senate Republican leader Mitch McConnell sent a letter to Biden indicating that the GOP would not vote for an increase in the debt ceiling.

Australia's central bank kept its monetary policy unchanged, as widely expected.

The policy board of the Reserve Bank of Australia headed by Governor Philip Lowe decided to leave its cash rate unchanged at a record low of 0.10 percent.

The board maintained the target of 10 basis points for the April 2024 Australian Government bond.

The aussie weakened to 0.7253 against the greenback from Monday's close of 0.7284. The aussie is seen finding support around the 0.70 mark.

The aussie edged down to 1.5983 against the euro, after touching 1.5926, which was its highest level since September 7. Should the aussie slides further, 1.62 is likely seen as its next support level.

The aussie dropped to 0.9155 against the loonie, down from a high of 0.9181 seen at 6:45 pm ET. Immediate support for the aussie is possibly seen around the 0.90 level.

The aussie reached as low as 80.55 against the yen, compared to yesterday's close of 80.74. Next key support for the aussie is likely seen around the 78.00 level.

The latest survey from Jibun Bank showed that Japan service sector continued to contract in September, albeit at a slower pace, with a services PMI score of 47.8.

That's up from 42.9 in August, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

The aussie pulled back to 1.0456 against the kiwi, following a high of 1.0477 hit at 11:15 pm ET. The aussie may find support around the 1.03 mark.

Looking ahead, PMI reports from major European economies and Eurozone PPI for August are due in the European session.

U.S. and Canadian trade data for August and ISM non-manufacturing PMI for September will be out in the New York session.

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