• AUD/USD is expected to resume its downside journey below 0.6670 amid a risk-off mood.
• The US Durable Goods Orders data is expected to contract by 1.0%, against an expansion of 1.1%.
• The expectations for more rate hikes from the RBA are higher as risks of upside inflation are elevated.

The AUD/USD pair is consolidating above 0.6670 in the European session. The Aussie asset is expected to resume its downside journey as the US Dollar Index (DXY) has stabilized after a corrective move to near 102.70.

S&P500 futures have generated some losses on Monday, carry-forwarded negative cues witnessed on Friday. The overall market mood is indicating that the risk-aversion theme is getting strengthened further as fears of global recession are accelerating due to higher interest rates by the central banks. Also, the upcoming quarterly reason has kept investors on their toes.

The US Dollar Index has shown a corrective move from a weekly high of 103.17 as investors have started digesting fears of more interest rate hikes from the Federal Reserve (Fed). Fed chair Jerome Powell has already confirmed that the central bank will continue tightening rates at a ‘careful pace.

Analysts at Rabobank expect the Fed to hike in July but also forecast a more moderate pace of rate hikes which would imply skipping September, with November being the meeting for a potential second hike.

Going forward, US Durable Goods Orders data will be keenly watched. As per the consensus, May’s data is expected to contract by 1.0%, against an expansion of 1.1% reported earlier.

On the Australian Dollar front, investors are awaiting the release of the monthly Consumer Price Index (CPI) data (May). Australian inflation turned out hotter in April and landed at 6.8% as labor market conditions remained upbeat. The expectations for more rate hikes from the Reserve Bank of Australia (RBA) are higher as risks of upside inflation are elevated