• The Australian Dollar could lose ground due to weaker-than-expected GDP data from China.
• China’s GDP (YoY) grew 4.7% in Q2, compared to the previous expansion of 5.3% and expected 5.1%.
• The US Dollar improves due to improved risk aversion following the attempted assassination of former US President Trump on Saturday.

The Australian Dollar (AUD) edges lower on Monday, trading around its six-month high of 0.6798 recorded on Thursday. In China, a close trade partner of Australia, Gross Domestic Product (GDP) grew 4.7% year-over-year in the second quarter, compared to a 5.3% expansion in the first quarter and an expected 5.1%. Weaker-than-expected China GDP data could exert mild pressure on the Aussie Dollar, undermining the AUD/USD pair.

The Australian Dollar may continue to rise as speculation grows that the Reserve Bank of Australia (RBA) might delay joining the global rate-cutting cycle or even raise interest rates again. Persistently high inflation in Australia prompts the RBA to maintain a hawkish stance.

The US Dollar (USD) strengthens due to increased risk aversion following an attempted assassination of former US President Donald Trump on Saturday. Analysts suggest that if this incident boosts Trump's election prospects, it could lead to so-called 'Trump-victory trades,' potentially resulting in a stronger US Dollar and a steeper US Treasury yield curve, per Reuters.

The AUD/USD pair may find support as the US Dollar (USD) could lose ground due to rising expectations of a potential Federal Reserve (Fed) rate cut in September. This anticipation is driven by the softer-than-expected US Consumer Price Index (CPI) data in June.