AUD/USD Drops 60 Pips Ahead of Australian CPI Data and BoJ Summary

AUD/USD has fallen sharply, declining approximately 60 pips as the pair remains under significant selling pressure heading into a critical Asian session. The primary focus is on Australia's May CPI release, where analysts expect headline inflation to show a drag from lower fuel prices, though underlying core inflation is expected to remain sticky. The Australian dollar had already appeared heavy prior to the move, and the selloff suggests markets are positioning defensively ahead of the data. Additionally, the Bank of Japan's Summary of Opinions from its latest meeting is scheduled for release, which could influence JPY crosses and broader risk sentiment across the Asia-Pacific session. The prevailing view among analysts is that any upside bounce in AUD/USD is likely to be met with renewed selling pressure, indicating a sell-the-rally bias remains firmly in place. Traders should monitor the CPI print closely, as a softer-than-expected reading could accelerate bearish momentum, while a hotter core figure may provide only temporary relief given the broader negative tone.