AUD/USD dips 0.2% as RBA signals more rate cuts ahead in 2025

AUD/USD declined to 0.6725, falling 0.2% after RBA minutes revealed expectations for additional rate cuts in the coming year. The August meeting minutes, where the RBA cut rates by 25bp to 4.10%, indicated board members see 'some further reduction in cash rate likely to be needed' to support economic growth. Markets are now pricing in a 70% probability of another 25bp cut at the September meeting, up from 55% before the minutes' release. The Australian dollar faces additional pressure from weakening iron ore prices, down 1.5% overnight. Technical indicators show AUD/USD breaking below the 0.6740 support level, with next support at 0.6700. Resistance is seen at 0.6760, coinciding with the 20-day moving average. The dovish RBA stance contrasts with other major central banks' cautious approach, potentially limiting AUD upside through year-end.