AUD slips as soft PMI reinforces RBA dovishness – BBH

AUD/USD remains under pressure as weak May PMI data supports expectations for RBA rate cuts. The pair struggles to hold above its 200-DMA, with markets now pricing in 75bps of easing over the next year, BBH FX analysts report.

AUD/USD stalls below 200-DMA amid rate cut bets

"AUD/USD is struggling to sustain a break above its 200-day moving average at 0.6450. Australia reported soft May PMI, strengthening the RBA’s dovish policy stance."

"The composite PMI dipped 0.4 points to a three-month low at 50.6, the services PMI dropped 0.5 points to a six-month low at 50.5, and the manufacturing PMI was unchanged at 51.7. RBA cash rate futures price-in a total of 75bps of cuts to a low of 3.10% in the next 12 months."