AUD/USD is trading above the 0.69 level. Nonetheless, economists at CIBC Capital Markets expect the pair to test its May low of 0.6830.

Reserve Bank of Australia improbable to support the aussie

“Due to the impact on activity from RBA tightening, we do not view hikes already delivered or subsequent moves as priced by the market, as being supportive for the AUD.”

“On growth, downgrading of Australian forecasts will see the current positive differentials, and AUD support from those, eroded.”

“We favour AUD/USD trading back toward its May low of 0.6830, with risk of deeper losses on indications of softer economic activity.”