• AUD/USD is expected to find offers around 0.6950 on rising odds of one more 75 bps rate hike in July.
• Fed’s Mester sees inflation near 2% in at least two years.
• This week, RBA minutes and PBOC‘s rate decision will be of significant importance.

The AUD/USD pair has opened around Friday’s last traded price and is expected to find offers around the critical hurdle of 0.6950. The pair witnessed a bearish open test-drive session on Friday, which is generally followed by a rangebound move or further weakness in the asset.

Last week, an unexpected three-quarter-to-a-percent rate hike by the Federal Reserve (Fed) brought a significant fall in the risk-perceived currencies. The downside will remain biased in the asset as consecutive 75 basis points (bps) rate hike announcement by the Fed is the new expectation of the town. Fed policymakers have started narrating an extreme hawkish stance on July monetary policy.

Cleveland Fed President Loretta Mester in an interview with CBS News on Sunday dictated It will take at least two years to achieve inflation near 2%. Also, a slowdown in the growth targets is the expectation but is not predicting a recession situation.

It is worth noting that only one Fed policymaker didn’t support a rate hike by 75 bps in June monetary policy. An all-around hawkish stance by Fed policymakers is advocating a similar rate hike in July. This will definitely hurt the employment rate but is necessary to be contained sooner.

On the aussie front, investors will keep an eye on the interest rate decision by the People’s Bank of China (PBOC). Considering the trade relations of the antipodean with China, a dovish stance by the PBOC may support the aussie. Apart from that, minutes from the Reserve Bank of Australia (RBA) will be of significant importance, which are due on Tuesday.