The Australian dollar slipped against its most major counterparts in the Asian session on Tuesday, after minutes from the Reserve Bank of Australia's August meeting showed that the Board is prepared to act if the recent surge in delta virus strain threaten the country's economic recovery.

Policymakers of the RBA said the economic activity and employment were expected to decline in the September quarter as the high transmissibility of the Delta variant raised the possibility of a more gradual reopening, minutes from the central bank's August 3 meeting showed.

The board said outbreaks of the Delta variant and accompanying lockdowns had introduced a high degree of uncertainty to the outlook for the second half of 2021.

The current virus outbreaks and lockdowns had interrupted the recovery and many households and businesses were facing difficult conditions, the minutes said. Members therefore considered the case for delaying the tapering of bond purchases to A$4 billion a week currently scheduled for September 2021.

"The Board would be prepared to act in response to further bad news on the health front should that lead to a more significant setback for the economic recovery," the minutes added.

Asian shares are mostly lower, with a steep drop in crude oil prices and the surge in the spread of the delta variant of coronavirus and the resultant restrictions in several countries as well as disappointing Chinese economic data and geopolitical concerns weighing on investor sentiment.

The aussie weakened to near a 9-month low of 0.7278 against the greenback and near a 7-month low of 79.44 against the yen, off its early highs of 0.7341 and 80.25, respectively. The currency is likely to find support around 0.70 against the greenback and 78 against the yen.

The aussie dropped to a 4-day low of 0.9189 against the loonie and a fresh 2-week low of 1.6162 against the euro, after rising to 0.9228 and 1.6037, respectively in early deals. The aussie is seen finding support around 0.90 against the loonie and 1.64 against the euro.

In contrast, the aussie rose to a 2-week high of 1.0541 against the kiwi, after touching 1.0420, which was its lowest level since November 30, 2020. The aussie may challenge resistance around the 1.07 mark.

Looking ahead, Eurozone construction output for June, GDP and employment data for the second quarter are set for release in the European session.

Canada housing starts for July are scheduled for release at 8:15 am ET.

U.S. NAHB housing market index for August, business inventories for June, retail sales and industrial production for July will be featured in the New York session.

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