AUD/USD Pair Consolidates Near 0.7200 Amid Rate Hike Bets

The AUD/USD pair has consolidated around 0.7200 at the start of the new week and remains close to its highest level since mid-May, reached on Friday.

The Australian Dollar's strength is driven by rising bets for a rate hike by the Reserve Bank of Australia in September, supported by stronger-than-expected economic growth and sustained domestic inflation.

The US Dollar, however, has struggled to capitalize on the positive impact of the upbeat US Nonfarm Payrolls (NFP) as traders wait for the release of US inflation figures later this week.

Escalating US-Iran tensions have acted as a tailwind for the Greenback, capping the upside for the AUD/USD pair.