• Australian Dollar’s downside is supported by hawkish RBA outlook.
• Markets now hint at rate cuts not before February 2025.
• Upcoming May CPI figures will be pivotal for markets to anticipate next RBA moves.

Tuesday's session observed a decline in the Australian Dollar (AUD) as it slipped down to the 0.6650 mark against the US Dollar, edging close to the 20-day Simple Moving Average (SMA) at 0.6640. The upcoming Australian inflation data remains in the spotlight, expected to shape future RBA moves. Low-tier data reported during the Asian sessions didn't significantly affect the Aussie's standing.

In Australia, despite signs of an ailing economy, the persistently high inflation acts as a roadblock to the Reserve Bank of Australia's (RBA) possible rate cuts, potentially limiting the downside pressure on the Aussie.