The Australian dollar weakened against its most major counterparts in the Asian session on Monday, as investors became cautious ahead of the U.S. Federal Reserve's interest rate decision and the release of a key data from Australia.

The Fed will hold its policy meeting on July 26-27, when it is expected to raise rates by 75 basis points.

The Australian Bureau of Statistics will release inflation data for the second quarter on Wednesday. Economists forecast CPI to rise to 6.2 percent year-on-year, up from 5.1 percent in the first quarter.

The data is expected to intensify rate hike expectations from the Reserve Bank of Australia.

Oil prices fell on fears that aggressive interest rate hikes from the Fed would reduce global fuel demand.

The aussie touched 4-day lows of 0.6878 against the greenback and 1.4804 against the euro, after rising to 0.6926 and 1.4732, respectively in early deals. The aussie may locate support around 0.67 against the greenback and 1.50 against the euro.

The aussie depreciated to 93.89 against the yen, its lowest level in ten days. The aussie is poised to challenge support around the 88.00 mark.

In contrast, the aussie rebounded to 0.8947 against the loonie and 1.1089 against the kiwi, off its early low of 0.8900 and a 4-day low of 1.1053, respectively. The aussie is seen finding resistance around 0.92 against the loonie and 1.12 against the kiwi.

Looking ahead, Germany Ifo business confidence survey results for July are due in the European session.

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