AUD/USD drops to 0.6600 as RBA signals potential rate cuts ahead

AUD/USD has declined 0.8% to 0.6600 after the Reserve Bank of Australia struck a dovish tone in its latest policy meeting minutes. The central bank indicated that it might consider cutting interest rates in the coming months if inflation continues to cool and economic growth slows. Policymakers expressed concerns over the global economic outlook and its impact on Australia's export-driven economy. The dovish shift has prompted traders to price in a 25bps rate cut by August, with the possibility of further easing before year-end. AUD/USD is now testing support at 0.6580, with a decisive break exposing the 0.6500 handle. Resistance is seen at 0.6650.