After a brief consideration of around 0.6640, the AUD/USD resumed its decline and tumbled towards 0.6600, reaching fresh weekly lows. The pair was trading lower following Australian inflation data and more recently, due to the stronger US Dollar across the board during the weekend. Inflation data from Australia came in below expectations, with the Monthly Consumer Price Index annual rate decelerating to 5.6% in May, below the market consensus of 6.1%. The Trimmed CPI also decelerated to 6.1% in May from 6.7% in April. These numbers weighed on rate hike expectations from the Reserve Bank of Australia next week and sent the Aussie down across the board. The AUD/USD dropped to 0.6619 during the Asian session and then rebounded modestly. After moving around 0.6640, the pair recently broke to the downside due to a stronger US Dollar across the board, tumbling to 0.6603, the lowest level in three weeks. It remains under pressure trading near the lows.

Market participants are now awaiting a European Central Bank (ECB) panel at the Sintra Forum with the participation of Bank of England's Bailey, Bank of Japan's Ueda, ECB's Lagarde, and Fed's Powell. Hawkish expectations from the Fed and the ECB have been benefiting the USD and the EUR during the last sessions. EUR/AUD is up on Wednesday for the eighth consecutive day and is trading above 1.6500, the highest since early May. The pair is moving with a clear bearish bias, looking for the next support area. If it breaks below 0.6600, the next support might be seen at the 0.6580 area, followed by 0.6550. On the upside, 0.6635 is the immediate resistance, followed by 0.6665.