AUD/USD faces pressure as RBA signals extended easing cycle

AUD/USD has declined 0.5% to 0.6475 following the Reserve Bank of Australia's 25 basis point rate cut and signals of an extended easing cycle. The RBA's decision reflects growing concerns about slowing inflation and weakening economic growth in Australia, with GDP expanding at just 1.2% annually. Market participants now expect at least two more rate cuts in the coming quarters as the central bank attempts to support the economy. The Australian dollar faces additional headwinds from declining iron ore prices, which have fallen 8% this month amid Chinese demand concerns. Technical analysis shows AUD/USD breaking below key support at 0.6500, with the next target at 0.6450. The 200-day moving average at 0.6520 now acts as resistance. Further downside pressure could emerge if upcoming Australian employment data disappoints, potentially pushing the pair toward the 0.6400 psychological level.