Snapshot: AUD/USD is struggling near three-week lows as the RBA’s May meeting minutes reinforced a cautious stance. The minutes highlighted the Board’s assessment of cumulative rate hikes and external uncertainties, suggesting a pause is increasingly likely. Attention now turns to US Pending Home Sales at 10:00 ET.
- Watch for a break below $0.7100, which would open the door to further downside.
- Rising US real yields pose a headwind for AUD.
Bias into NY: Bearish on AUD/USD. The RBA’s reluctance to signal a clear rate-cutting path, coupled with a crowded long positioning and a rising USD (DXY near 119.28), suggests further weakness towards $0.7050 is possible.