The Reserve Bank may shift to a very mild tightening bias which won't be enough to support the Australian dollar while the Fed is pushing up rates.

The news on the Australian economy has been far from upbeat. A benign consumer price index report will make the likelihood of another RBA rate hike disappear completely and this will potentially weigh on the Australian dollar.

The Australian dollar is being hurt by the rise in global bond yields, driven by expectations all three major central banks will be raising interest rates this year. This is hurting commodities.

The commodity price story has continued to be positive for the Australian dollar.