FXStreet reports that analysts at Mizuho Bank suggest that the AUD/USD pair’s room on the downside looks set to widen in July.

“There are concerns that the pace of the economic recovery might slow on the two-week lockdowns implemented in Sydney (NSW) and other regions. The aussie will also be impacted by the RBA’s policy stance. In the US, meanwhile, the FOMC adopted a hawkish stance at its last meeting.” 

“It seems Australia’s domestic fundamentals to be released this month will continue to remain firm, but the AUD/USD pair could be weighed down by ongoing lockdowns.”