Ella 
The Australian dollar (AUD) regained recent losses against the US dollar (USD) on Monday. AUD/USD appreciated on hawkish sentiment surrounding the Reserve Bank of Australia (RBA). In addition, as Australia’s close trading partner, China’s optimistic inflation may have provided support for the Australian dollar.
RBA Governor Michele Bullock last week stressed the importance of remaining cautious about inflation risks and said the central bank would not hesitate to raise interest rates again if necessary to combat inflation. Just a few days ago, the Reserve Bank of Australia kept interest rates unchanged at 4.35% for the sixth consecutive meeting.
On the U.S. dollar, market expectations that the Federal Reserve may cut interest rates in September may put pressure on the greenback and may provide support for AUD/USD.
Investors are likely to focus on U.S. producer inflation data on Tuesday and consumer inflation data on Wednesday. Traders are looking for evidence that price growth remains stable.
