Snapshot: AUD/USD is soft, trading near the 0.6650 level, weighed down by the RBA’s cautious stance on inflation. The central bank remains reluctant to commit to a cut path, citing uneven progress on inflation and a tight labour market. All eyes will be on the 11:30 AEST Employment Change and Unemployment Rate releases.
- A break below 0.6630 could open the door to further downside, targeting the April lows.
- Watch FOMC Meeting Minutes at 14:00 ET for broader risk sentiment cues, but the Aussie’s direction will be locally driven.
Bias into NY: Bearish AUD/USD, contingent on a strong US dollar, as the market is already crowded long, increasing the risk of a squeeze lower if employment data disappoints. Support lies at 0.6630, with a potential move towards 0.6600 if that level breaks.