• AUD/USD slips amid ongoing bearish sentiment, approaching key support level.
• Economic weakness in Australia intensifies rate-cut expectations for the RBA.
• Technical indicators suggest a potential correction, but bearish momentum remains dominant.

The Australian Dollar (AUD) encountered some selling pressure against the US Dollar (USD) on Monday, declining by 0.50% to 0.6480. During the European session, it fell to its lowest since November 2023 around 0.6350 as risk-off flows dominated the markets, while investors await Tuesday's Reserve Bank of Australia (RBA) decision for further direction.

Despite persistent high inflation, recent data has pointed to weaknesses in the Australian economy. This has prompted markets to shift their expectations from a potential rate hike by the RBA to a rate cut by year-end. The RBA is expected to keep rates steady at 4.35% at its meeting on Tuesday, but investors will be closely monitoring the central bank's policy guidance for any hints of a more dovish stance.