• The Australian Dollar loses ground due to increased risk aversion on Tuesday.
• Australia's Building Permits declined by 6.5% MoM in June, swinging from a 5.7% increase in May.
• The US Dollar could lose ground due to increased odds of a Fed rate cut in September.

The Australian Dollar (AUD) edges lower against the US Dollar (USD) following the release of Building Permits data on Tuesday. Australia's Consumer Price Index (CPI) data will be released on Wednesday, offering potential insights into the future direction of the Reserve Bank of Australia’s (RBA) monetary policy. Analysts anticipate a slight re-acceleration in Australia’s headline inflation for the second quarter, with the core rate likely remaining steady.

This inflation report will be pivotal in determining whether the RBA will opt for a rate hike at its policy meeting next week. However, economists have cautioned that an additional increase in interest rates could jeopardize Australia’s economic recovery.

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