AUD/USD losses were cushioned at the 0.7200 level. A break below this mark would clear the way for a fall to the 0.7130 region, economists at OCBC Bank report.

Upside momentum for now

“Market expectations of RBA rate hikes remain optimistic, despite Lowe’s continued pushback. Labour market data on Thursday will be another opportunity to reassess the market’s optimistic view of the RBA.”

“0.7200 will be a key support, with a breach leaving the door open to 0.7130.”

“The AUD, together with the NZD, is our preferred avenue to express USD strength for now.”