• AUD/USD registered significant declines on Tuesday towards 0.6615.
• Slowdown in Chinese economic activity is contributing to the decline in commodity prices.
• Stubbornly high inflation continues to prompt the RBA to delay rate cuts.

In Tuesday's trading session, the Australian Dollar (AUD) suffered further losses against the USD, with AUD/USD falling to 0.6615. This decline is largely attributed to sluggish Chinese economic activity which has resulted in a drop in commodity prices, illustrated by plunges in iron ore future prices to their lowest since early April.

Despite signs of weakness in the Australian economy, the RBA continues to resist rate cuts due to stubbornly high inflation. This could potentially limit any further decline in the AUD. The RBA maintains its position as one of the last central banks within the G10 countries likely to start cutting rates, a stance that might extend the AUD's gains.