AUD/USD Slides Below 0.6600 as CPI Data Points to RBA Pause

AUD/USD has declined 0.5% to 0.6580, breaking below the psychological 0.6600 support level as markets anticipate softer Australian inflation data. Consensus forecasts suggest Australia's quarterly CPI will ease to 2.9% year-over-year from the previous 3.6%, potentially moving within the Reserve Bank of Australia's 2-3% target range. The Australian dollar faces additional pressure from a strengthening US Dollar Index, which has gained 0.3% to 104.20 amid risk-off sentiment. Market positioning shows traders increasingly betting on an RBA rate pause at the upcoming meeting, with futures pricing only a 15% chance of another hike. Technical indicators reveal immediate support at 0.6550 (July low), while resistance emerges at 0.6620. A weaker-than-expected CPI reading could accelerate AUD/USD losses toward 0.6500, particularly if global risk sentiment deteriorates further or commodity prices continue their recent decline.