In the near-term, economists at Westpac look for AUD/USD to slip back to 0.69 or below, but the pair is still seen higher in Q3. 

Aussie’s domestic fundamentals remain broadly supportive

“The Reserve Bank of Australia (RBA) is likely to reinforce the hawkish message in Lowe’s speech and minutes on Tuesday. Lowe will be comforted by the 60K jump in jobs in May and a record high employment/population ratio. But the nasty global combination of soaring inflation and slowing growth should cap equity prices.” 

“Over the week we look for A$ to slip back to 0.6900 or below, but keep our 0.74 Q3 target.”