"An under-priced RBA rate cut and strong US labor market report should push AUDUSD lower this week."

So says Barclays in this piece via eFX

"An under-priced RBA rate cut and strong US labor market report should push AUDUSD lower this week. We narrowly expect the RBA to cut rates by 25bp to a new record low of 2.00% The RBA has a strong easing bias, recently made clear by Governor Stevens' in a New York speech, and we expect further easing to reflect concern over the investment outlook and the widening gap between the real exchange rate and the terms of trade. We are mindful, though, that the RBA held fire in March and April and that the strength of housing, together with sticky underlying inflation and better labor market data, may give it pause for thought," Barclays projects.

"Regardless, we expect the RBA to retain an easing bias to maintain downward pressure on the exchange rate. The RBA issues an updated Statement on Monetary Policy on Friday and we see some risk that it will trim its outlook for growth given concerns over non-mining investment, while the forecast profile for underlying inflation might be bumped up a little in the near term," Barclays adds.

On the technical front, Barclays' rationale is as follows:

"In addition, our technical strategists are bearish AUDUSD. Last Wednesday's topping candle has capped recent corrective gains and was confirmed by subsequent selling into the end of last week highlight May as being the most negative for AUDUSD versus its major currency peers and the most bearish month of the year for AUDUSD as measured by median and mean returns," Barclays projects.

There is a chart to go in here but I can't get it to upload - I'll stick it in the comments below

"This adds to our conviction for a move lower towards initial targets in the 0.7680 area. A move below the 0.7530 range lows would signal further downside towards our greater targets near 0.7100," Barclays adds.