The Australian dollar remained above $0.71 near a 12-week high, extending support from broad US dollar weakness. It rose 1.2% last week, its longest weekly winning streak since 2020, as concerns over US fiscal policy and the effectiveness of Treasury debt buybacks pressured the greenback. Investors are awaiting Australia’s July inflation data on Wednesday for signals about the RBA (Reserve Bank of Australia) and its interest-rate outlook. The central bank held its cash rate at 4.35% this month, while Deputy Governor Hauser said further increases remain possible if inflation risks linked to the Middle East conflict, AI investment and weak productivity materialize. Softer labor-market conditions have reduced expectations for additional tightening, but markets still price in roughly 60% odds of a year-end hike and about 68% odds of a February move. Investors are also monitoring Middle East tensions, with the US expected to announce new sanctions against Iran.