Ella 
AUD/USD pared recent losses on Monday. The pair gained on hawkish sentiment from the Reserve Bank of Australia (RBA). In addition, rising inflation in Australia’s close trading partner China also 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. The RBA’s comments come just days before the RBA keeps interest rates unchanged at 4.35% for a sixth consecutive meeting.
On the USD side, market expectations that the Federal Reserve (Fed) may cut interest rates in September may put pressure on the US dollar (USD), providing potential 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 confirmation that price growth remains stable.
