The Australian dollar rose to around $0.658 on Monday, extending gains from the previous week amid growing optimism over a newly struck trade agreement between the US and the EU. The deal, which affects nearly one-third of global trade, introduces a 15% tariff on EU exports and includes commitments from the EU to increase purchases of US energy products and military equipment. Market sentiment was further buoyed by reports indicating that Washington and Beijing are expected to extend their current tariff truce for an additional three months. At home, investor attention is shifting toward the monthly and quarterly inflation figures set to be released later this week. These data points will be closely watched for clues about the Reserve Bank of Australia’s next moves on monetary policy. As the RBA board remains visibly cautious about persistent inflationary pressures, one of the country’s major banks has warned that a rate cut at the August meeting is far from guaranteed.