AUD/USD gains ground above 0.6500 ahead of Chinese PMI data

• AUD/USD strengthens to around 0.6535 in Monday's early Asian session.
• Trump's tariff uncertainty and the Fed's dovish expectations weigh on the US Dollar. 
• China's NBS PMI data for June will be the highlight later on Monday. 

The AUD/USD pair gains traction to near 0.6535 during the early Asian session on Monday. The renewed trade concerns due to the White House appear poised to fall short of the sweeping global trade reforms it promised to achieve, weighing on the Greenback. Investors brace for the release of China's NBS Purchasing Managers Index (PMI) data, which will be released later on Monday. 

Top US President Donald Trump advisers said on Friday that agreements with as many as a dozen of the US's largest trading partners are expected to be completed by the July 9 deadline, per Bloomberg. However, the uncertainty remains, as it was still unclear whether the administration would hold firm on the deadline or extend it to allow more time for talks. This, in turn, drags the US Dollar (USD) lower and acts as a tailwind for the pair. 

Markets widely expect the US Federal Reserve (Fed) to remain on hold at its late July meeting. However, traders raise bet that the US central bank will cut rates more times this year and possibly sooner than previously expected, as some US economic data points to a weakening economy, which contributes to the USD's downside. 

China's National Bureau of Statistics (NBS) will publish its monthly PMI reports later on Monday. The Manufacturing PMI is expected to improve to 49.7 in June from 49.5 in May, while the Non-Manufacturing PMI is projected to remain unchanged at 50.3 in the same report period. Any surprise downside in the Chinese economic data could undermine China-proxy Aussie, as China is a major trading partner for Australia.