• AUD/USD showed a significant increase of 0.75%, rising to 0.6720.
• The continued hawkish stance of the RBA supports the Aussie against its peers.
• Intense dovish bets on the Fed weigh on the USD.

On Monday, the AUD/USD is gaining significant traction mainly due to a weaker USD on a quiet Monday. In addition, the monetary policy divergence between the Federal Reserve (Fed), set to start cutting in September, versus the reluctance of the Reserve Bank of Australia (RBA) to cut is also pushing the pair upward.

Despite the mixed Australian economic outlook and the high inflation, the RBA's persistent hawkish stance has led to markets pricing in just 25 basis points of easing for 2024, which seems to be making the Aussie gain more traction.