AUD/USD looks set to fall back into 0.75, unless the RBA can salvage their dove-like image

• The AUD will get a workout this week, with more details from the dovish RBA, and Australian employment in the pipe.
• Last week's recovery looks unconvincing, and experts expect further losses.

The AUD/USD finished last week more or less where it started, dipping into 0.7412 before recovering to the 0.7540 region, but upward mobility for the AUD remains limited. The Aussie has so far been unable to establish a meaningful correction against the Greenback, and is still down almost 3.5% from April's high of 0.7812.

AUD/USD analysis: to face multiple macroeconomic challenges this week

Monday is going to be a thin schedule for the AUD, but Tuesday brings the Reserve Bank of Australia's (RBA) Meeting Minutes early on at 01:30 GMT. The RBA has taken an increasingly dovish stance in the face of consistently disappointing economic figures, and the Aussie is struggling under the weight of a central bank that is just as likely to make an interest rate cut instead of a rate hike. Looking ahead, Thursday will also pose a challenge for the Aussie with Australian employment figures due.

AUD and NZD: Forecasts lowered - Rabobank

As the Australian economy continues to waffle against global growth trends, many analysts expect the Aussie's weakness to continue further, with ANZ expecting the AUD/USD to continue falling into the 0.72 neighborhood within the next twelve months, citing Australia's lagging inflation: “While the budget giveaways are supportive for growth, these are not expected to result in a meaningful change to Australian growth and inflation forecasts. Q1 CPI registered a softer than expected 1.9% y/y, below the RBA’s 2%-3% policy target band."

AUD/USD levels to watch

The AUD's recovery from mid-week shows strong technical signs of running out of gas quickly, and as FXStreet's own Valeria Bednarik noted, a lack of a meaningful correction could see the pair falling once more: "the Aussie's recovery against the greenback was among the most relevant in technical terms but still fell short of indicating a reversal, as the pair reached the 38.2% retracement of its latest weekly decline at 0.7565 on Friday before easing some.  In the daily chart, a strongly bearish 20 DMA converges with the mentioned Fibonacci resistance level, while technical indicators have recovered sharply from oversold readings, but stalled their advances right below their midlines, with the RSI partially losing upward strength, indicating that clearer signs are needed before calling for an upward extension. Shorter term, and according to the 4 hours chart, the pair settled a couple of pips below a 100 SMA, but well-above a bullish 20 SMA, while technical indicators are modestly retreating from overbought levels, not enough to suggest a downward move ahead."

Support levels: 0.7500 0.7470 0.7435

Resistance levels: 0.7565 0.7610 0.7650