• AUD/USD declines amidst rising risk-off sentiment.
• China's PBOC keeps its 1-year MLF rate steady at 2.30%, which failed to trigger movements on the AUD.
• The RBA's hawkish stance supports the Australian Dollar.

The AUD/USD declined by 0.30% to 0.6775 in Monday's session as the Australian Dollar (AUD) edged lower despite hovering around a seven-month high near 0.6800. The decline was primarily attributed to a broad USD recovery and a cautious market sentiment.

Amidst a volatile economic backdrop in Australia, the Reserve Bank of Australia's (RBA) aggressive stance against rising inflation has dampened market expectations regarding multiple cuts, which has benefitted the Aussie.