The Australian labor market report for July should support the RBA’s view that it can take another pause in the interest rate cycle. 

If the inflation figures for July, which will be released at the end of the month, also signal further easing, the RBA should see itself on a good path. 

Finally, the news from China should make the RBA cautious about further rate hikes, as they pose a risk to the Australian economy. In this respect, it is little surprise that the market sees little chance of a further rate hike and that the AUD is trading weaker against the USD.