CFD Trading Rate Australian Dollar vs US Dollar (AUDUSD)

• AUD/USD attracts some intraday sellers after touching a one-week high on Wednesday.
• Rebounding US bond yields revive USD demand and exert some pressure on the pair. 
• The RBA’s hawkish tilt and a positive risk tone could help limit losses for the Aussie.

The AUD/USD pair retreats from the vicinity of mid-0.6500s, or a one-week high touched earlier this Wednesday and extends its steady intraday descent through the first half of the European session. The downward trajectory drags spot prices to a fresh daily low, around the 0.6515 region in the last hour and is sponsored by the emergence of some US Dollar (USD) dip-buying.

The US Treasury bond yields rebound swiftly after the overnight sharp fall amid the growing conviction that US President-elect Donald Trump's expansionary policies will boost inflation and limit the scope for the Federal Reserve (Fed) to cut rates. Apart from this, the worsening Russia-Ukraine conflict turns out to be another factor underpinning the safe-haven buck, which, in turn, is seen exerting some downward pressure on the AUD/USD pair. 

Meanwhile, the initial market reaction to Russia's announcement that it would lower its threshold for a nuclear strike faded after comments from Russian and US officials eased concerns about the onset of a full-blown nuclear war. This is evident from a generally positive tone around the equity markets, which could act as a headwind for the safe-haven Greenback and help limit the downside for perceived riskier currencies, including the Aussie.

Furthermore, the Reserve Bank of Australia's (RBA) hawkish stance should offer some support to the AUD/USD pair. In fact, the RBA November meeting minutes released on Tuesday indicated that the board remains vigilant to upside inflation risks and believes that policy needs to remain restrictive. This might hold back traders from placing aggressive bearish bets around the Australian Dollar (AUD) and act as a tailwind for the currency pair. 

Moving ahead, investors now look forward to speeches from a slew of influential FOMC members, due later during the North American session, for cues about the future rate-cut path. This, along with the US bond yields and the broader risk sentiment, will drive the USD and produce short-term trading opportunities around the AUD/USD pair. The focus will then shit on RBA  Governor Michele Bullock's speech during the early Asian hours on Thursday.

There has been a slight increase in momentum; the Australian Dollar (AUD) is expected to rise further to 0.6560. In the longer run, current price action is part of a rebound that could reach 0.6560, possibly 0.6600, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Current rebound can reach 0.6560

24-HOUR VIEW: “We expected AUD to trade in a range between 0.6470 and 0.6520 yesterday. Our view was incorrect as AUD rose to 0.6534. There has been a slight increase in momentum. Today, AUD is expected to rise further to 0.6560. The major resistance at 0.6600 is unlikely to come into view. To maintain the buildup in momentum, AUD must not break below 0.6500, with minor support at 0.6515.”

1-3 WEEKS VIEW: “Yesterday (19 Nov, spot at 0.6505), we noted that ‘downward momentum is slowing.’ We pointed out, ‘a break above 0.6520 would mean that instead of continuing to weaken, AUD is more likely to consolidate.’ AUD then broke above 0.6520, reaching a high of 0.6534. Not only has downward momentum faded, but upward momentum has also increased to an extent. We view the current price action as part of a rebound that could reach 0.6560, possibly 0.6600. We will maintain the same view as long as AUD remains above 0.6460.”

• AUD/USD finds resistance at the psychological level of 0.6500 amid ongoing bearish bias.
• The pair may test support around the psychological level of 0.6400, followed by the descending channel’s lower boundary.
• Further resistance appears around the nine-day EMA at 0.6518.

AUD/USD halts two days of gains, trading around 0.6500 during the European hours on Tuesday. Technical analysis of the daily chart shows the pair moving downwards within a descending channel pattern, reinforcing an ongoing bearish bias.

The 14-day Relative Strength Index (RSI) is positioned below the 50 level, confirming the prevailing bearish sentiment. Additionally, the nine-day EMA remains below the 14-day EMA, which suggests a bearish price momentum for a short-term period.

In terms of support, the AUD/USD pair may approach the psychological level of 0.6400, followed by the lower boundary of the descending channel at 0.6390 level. A decisive break below the descending channel could amplify selling pressure, potentially driving the pair toward its yearly low of 0.6348, last recorded on August 5.

On the upside, the 0.6500 level serves as immediate resistance. A sustained move above this threshold might push the AUD/USD pair toward the nine-day EMA at 0.6518, followed by the 14-day EMA at 0.6541 level. Surpassing these levels could pave the way for a rally toward the three-week high of 0.6687.

AUD/USD: Daily Chart

The Australian Dollar (AUD) is expected to trade in a range between 0.6470 and 0.6520. In the longer run, downward momentum is slowing; a break of 0.6520 would mean that AUD is not weakening further, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

AUD is expected to trade between 0.6470 and 0.6520

24-HOUR VIEW: “Yesterday, we noted that ‘As momentum indicators are turning flat, further sideways trading appears likely, probably in a range of 0.6445/0.6485.’ The subsequent advance that sent AUD to a high of 0.6510 was unexpected. The advance did not result in any significant increase in momentum, and AUD is unlikely to rise much further. Today, AUD is expected to trade in a range between 0.6470 and 0.6520.”

1-3 WEEKS VIEW: “We revised our view to negative in the middle of last week. In our latest narrative from last Friday (15 Nov, spot at 0.6450), we highlighted that ‘further AUD weakness still appears likely.’ We also highlighted that ‘The next level to watch is 0.6400.’ Yesterday, AUD rebounded to a high of 0.6510, not far below our ‘strong resistance’ level of 0.6520. Downward momentum is slowing, a break above 0.6520 would mean that instead of continuing to weaken, AUD is more likely to consolidate.”

• AUD/USD holds steady around 0.6505 in Monday’s early Asian session. 
• The stronger US economic data and cautious comments from Fed officials might lift the USD. 
• Trump's policies on taxes, tariffs could weigh on the Aussie.

The AUD/USD pair trades flat near 0.6505 amid the consolidation of the US Dollar (USD) during the early Asian session on Tuesday. Investors will monitor the Reserve Bank of Australia (RBA) Meeting Minutes, which is due later on Tuesday. 

The US Dollar Index (DXY), which measures the USD against a basket of currencies, currently trades around 106.20 after retreating from a more than one-year high last week of 107.07. The Greenback struggles to gain ground as the Trump trade seems to lose momentum. However, the stronger US economic data and cautious remarks from the Federal Reserve (Fed) might cap the downside for the USD in the near term. 

In a light week for US economic data, the National Association of Home Builders (NAHB) Housing Market Index climbed to 46.0 in November, the highest since April, from 43.0 in October, beating the estimation of 44.0.

On the Aussie front, Donald Trump has threatened to implement 60% tariffs on exports from China as he seeks to protect US companies and jobs. The likely negative spillovers from Trump’s policies might drag the Australian Dollar (AUD) lower as China is a major trading partner of Australia. 

Investors brace for the RBA Meeting Minutes for more cues on future interest rates. The hawkish tone about the inflationary outlook for the Australian economy could lift the Aussie against the USD for the time being. 

• AUD/USD struggles around 0.6450 as the US Dollar performs strong broadly.
• Trump’s economic agenda is expected to boost price pressures.
• Investors await the RBA minutes for fresh interest rate guidance.

The AUD/USD pair trades with caution near 0.6450 in Monday’s European session. The Aussie pair finds temporary support but struggles to gain ground as the US Dollar (USD) remains broadly firm. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, edges lower to near 106.50 in European trading hours but remains close to its annual high of 107.00.

The optimism over President-elected Donald Trump implementing its economic agenda in his administration has kept the US Dollar on the frontfoot. Donald Trump is expected to levy hefty tariffs on imports and lower taxes, which will accelerate inflationary pressures and force the Federal Reserve (Fed) to follow a more gradual policy-easing approach.

Also, Fed Chair Jerome Powell said on Thursday that the economy has not sent any signals, which strain on cutting interest rates aggressively. However, he commented that price pressures remain on a sustainable path towards the bank’s target of 2%, which allows us to continue heading towards the neutral rate.

For the last policy meeting of this year, traders see a 65% chance that the Fed will cut interest rates by 25 basis points (bps) to 4.25%-4.50%, according to the CME FedWatch tool.

Meanwhile, the next move in the Australian Dollar (AUD) will likely occur on Tuesday after the release of the Reserve Bank of Australia (RBA) minutes of the monetary policy that took place on November 5. In the policy meeting, the RBA left its Official Cash Rate (OCR) unchanged at 4.35% and Governor Michelle Bullock delivered a hawkish interest rate guidance with concerns over upside risks to inflationary pressures.

Momentum indicators are turning flat; Australian Dollar (AUD) is likely to trade in a sideways range of 0.6445/0.6485. In the longer run, further AUD weakness still appears likely; the next level to watch is 0.6400, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

The next level to watch is 0.6400

24-HOUR VIEW: “When AUD was at 0.6450 last Friday, we highlighted that ‘provided that 0.6490 remains intact, AUD could decline further.’ However, we pointed out that ‘the major support at 0.6400 is unlikely to come into view.’ Our expectations did not turn out, as AUD traded sideways between 0.6443 and 0.6482, closing at 0.6465 (+0.16%). As momentum indicators are turning flat, further sideways trading appears likely, probably in a range of 0.6445/0.6485.”

1-3 WEEKS VIEW: “We indicated last Friday (15 Nov, spot at 0.6450) that ‘further AUD weakness still appears likely.’ We also highlighted that ‘The next level to watch is 0.6400.’ Although downward momentum has slowed somewhat, we will continue to hold the same view for now. Overall, only a breach of 0.6520 (no change in ‘strong resistance’ level) would mean that the weakness in AUD has stabilised.”

• AUD/USD trades with mild gains near 0.6460 in Monday’s early Asian session. 
• Fed Chair Powell downplayed the need for aggressive rate cuts, citing economic strength.
• The hawkish RBA might cap the downside for the pair. 

The AUD/USD pair trades on a stronger note around 0.6460 during the early Asian session on Monday. However, the upside for the pair might be limited amid the cautious remarks from the Federal Reserve (Fed) officials and strong US economic data, which boost the US Dollar (USD) broadly. 

The US Retail Sales increased slightly more than expected in October, according to the Commerce Department's Census Bureau on Friday. Retail sales rose 0.4% in October versus 0.8% prior (revised from 0.4%), above the market consensus of 0.3%. 

Traders reduced their expectations for a Fed rate reduction in December. Fed Chair Jerome Powell said last week that "the economy is not sending any signals that we need to be in a hurry to lower rates.” According to the CME FedWatch Tool, the markets have priced in nearly 60% of the 25 basis points (bps) rate cut by the Fed at the December meeting. 

On the Aussie front, the hawkish comments from Reserve Bank of Australia (RBA) Governor Michele Bullock could provide some support for the Australian Dollar (AUD). The RBA reiterated that “the Board is not ruling anything in or out” and that there is “the need to remain vigilant to upside risks to inflation.” Investors will keep an eye on the RBA minutes, which will be released on Tuesday. 

Provided that 0.6490 remains intact, the Australian Dollar (AUD) could decline further; the major support at 0.6400 is unlikely to come into view. In the longer run, further AUD weakness still appears likely; the next level to watch is 0.6400, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Further AUD weakness still appears likely

24-HOUR VIEW: “Yesterday, when AUD was at 0.6495, we expected AUD to ‘edge lower, possibly reaching 0.6460.’ We were of the view that ‘the major support at 0.6440 is likely out of reach.’ Our view was validated, as AUD dropped to 0.6441, recovering slightly to close at 0.6454 (- 0.48%). Although there is no significant increase in momentum, the bias for AUD remains on the downside. Today, provided that 0.6490 remains intact (minor resistance is at 0.6470), AUD could decline further. However, the major support at 0.6400 is unlikely to come into view. Note that there is another support level at 0.6420.”

1-3 WEEKS VIEW: “We indicated yesterday that AUD ‘is likely to decline further, and the levels to monitor are 0.6460 and 0.6440.’ While our view of a weaker AUD was not wrong, we did not quite expect it to drop as quickly (low has been 0.6441). Further AUD weakness still appears likely. The next level to watch is 0.6400. On the upside, should AUD break above 0.6520 (‘strong resistance’ level was at 0.6550 yesterday), it would mean that the weakness has stabilised.”

• AUD/USD posts a fresh three-month low near 0.6460 as the US Dollar continues to move higher.
• Trump’s clean sweep will allow him to implement policies without interruption.
• RBA Bullock favored keeping interest rates at their current levels as inflation is still not under control.

The AUD/USD pair extends its downside journey to near 0.6460 in European trading hours on Thursday. The Aussie pair prints a fresh three-month low on multiple headwinds, weak Australian Employment data for October, and the upbeat US Dollar (USD).

Australian labor market data showed that the economy added 15.9K new workers, fewer than estimates of 25K and the former release of 61.3K. A slowdown in the labor demand diminished fears of price pressures remaining persistent for a longer period. The Unemployment Rate remains at 4.1%, as expected.

Though some signs of a slowdown in job growth are visible, the Reserve Bank of Australia (RBA) is less likely to cut interest rates sooner as Governor Michelle Bullock commented on Wednesday that interest rates are needed to remain at their current levels until the central bank get inflation under control.

Meanwhile, the US Dollar adds more gains as President-elected Donald Trump locks both United States (US) houses, the Senate and the House of Representatives, a scenario that will allow Republicans to implement policies smoothly. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rises vertically to near the key resistance of 107.00, the highest level seen in more than a year. In the election campaign, Trump vowed to raise import tariffs and lower taxes.

Going forward, investors will focus on Federal Reserve (Fed) Chair Jerome Powell’s speech for fresh guidance on interest rates. According to the CME FedWatch tool, the central bank is expected to cut interest rates by 25 basis points (bps) to 4.25%-4.50% in the December meeting.

The Australian Dollar (AUD) is expected to edge lower, possibly reaching 0.6460. The major support at 0.6440 is likely out of reach. In the longer run, AUD is likely to decline further; the levels to monitor are 0.6460 and 0.6440, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Major support at 0.6440 is likely out of reach

24-HOUR VIEW: “We noted yesterday that AUD ‘is under mild downward pressure.’ We held the view that it ‘could drift lower, but a sustained break below 0.6500 appears unlikely.’ While we got the directional view correct, AUD fell more than expected to 0.6481. Despite the relatively sharp decline, downward momentum has not increased by much. Today, we expect AUD to edge lower, possibly reaching 0.6460. The major support at 0.6440 is likely out of reach. To maintain the momentum, AUD must not break above 0.6530, with minor resistance at 0.6510.”

1-3 WEEKS VIEW: “Yesterday (13 Nov, spot at 0.6530), we highlighted that the recent price action has resulted in ‘a tentative buildup in momentum.’ We also highlighted that ‘To decline in a decisive manner, AUD must break and remain below 0.6500.’ AUD subsequently fell to 0.8481, closing at 0.6485. Although momentum has not increased much, AUD is likely to decline further. The two levels to monitor are 0.6460 and 0.6440. We will view AUD negatively as long as 0.6550 (‘strong resistance’ level was at 0.6600 yesterday) is not breached.”

• AUD/USD hovers slightly above 0.6500 ahead of the US inflation data for October.
• Investors expect that Trump’s policies will be inflationary for the US economy.
• The Australian Dollar will be guided by the labor market data for October.

The AUD/USD pair trades in a tight range near a three month-low, slightly above 0.6500 in the European trading session on Wednesday. The Aussie pair turns sideways as investors await the United States (US) Consumer Price Index (CPI) data for October, which will be published at 13:30 GMT.

According to the estimates, the headline inflation accelerated to 2.6% from 2.4% in September on year-on-year. In the same period, the core CPI – which strips off volatile food and energy prices – is estimated to have grown steadily by 3.3%. On month, headline and core inflation are expected to have risen at a steady pace of 0.2% and 0.3%, respectively. Investors will pay close attention to the inflation to get cues on the Federal Reserve’s (Fed) likely interest rate action in the December meeting.

The inflation data has regained its mojo lately as investors worry that the United States (US) inflation could rebound again, with a high probability that President-elected Donald Trump could raise import tariffs by 10% and lower corporate taxes in this administration.

On Tuesday, the comments from former Fed official Loretta Mester at the UBS European Conference in London indicated that she agreed with market expectations of fewer rate cuts in 2025 due to a potential tariff hike by Donald Trump. "The market is right," she remarked, "they're probably not going to have as many cuts next year as was assumed or expected in September," CNBC said, Reuters reported.

Meanwhile, the Australian Dollar (AUD) struggles to gain ground despite firm expectations that the Reserve Bank of Australia (RBA) will not start reducing interest rates this year. The RBA still sees upside risks to price pressures with labor market remaining steady. To get cues about the current labor market status, investors will focus on the Employment data for October, which will be published on Thursday. The Unemployment Rate is estimated to have remained steady at 4.1%. The Australian economy is expected to have added 25K new workers, lower than 64.1K in September.

The Australian Dollar (AUD) is under mild downward pressure; it could drift lower, but a sustained break below 0.6500 appears unlikely. In the longer run, there has been a tentative buildup in momentum; to decline in a sustained manner, AUD must break and remain below 0.6500, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

To decline further, AUD must break and remain below 0.6500

24-HOUR VIEW: “We expected AUD to trade in a 0.6555/0.6595 range yesterday. Our view was incorrect, as instead of trading in a range, AUD dropped to 0.6515, closing on a soft note at 0.6532 (-0.64%). Despite the decline, downward momentum has not increased much. However, provided that 0.6560 (minor resistance is at 0.6545) is not breached, AUD could drift lower to 0.6500. Due to the mild momentum, a sustained break below 0.6500 appears unlikely.”

1-3 WEEKS VIEW: “Our most recent narrative was from Monday (11 Nov, spot at 0.6585), wherein the recent pronounced but short-lived price movements have resulted in a mixed outlook. We indicated that AUD ‘could continue to trade in a choppy manner, likely between 0.6515 and 0.6690.’ Yesterday, AUD tested the lower end of our expected range, touching a low of 0.6515. There has been a tentative buildup in momentum, but it is too early to determine whether it is sufficient for a sustained decline. To decline in a decisive manner, AUD must break and remain below 0.6500. The likelihood of AUD breaking clearly below 0.6500 will increase in the coming few days, provided that 0.6600 is not breached. Looking ahead, the next support below 0.6500 is at 0.6460.”

• AUD/USD stumbles to near 0.6550 as the US Dollar extends its rally on so-called ‘Trump trades’.
• Investors await the US inflation data for October, which will be published on Wednesday.
• The RBA is expected to maintain its interest rates at its current levels by the year-end.

The AUD/USD pair falls sharply to near 0.6550 in North American trading hours on Tuesday. The Aussie pair weakens as traders ramp up their bets in those assets that are expected to perform better in US President-elected Donald Trump’s administration. The US Dollar (USD) has been one of the key beneficiaries of so-called ‘Trump trades’ as Trump’s policies are expected to boost United States (US) economic growth.

Trump vowed that he would raise import tariffs by 10% universally and lower corporate taxes in his election campaign, a scenario that will boost demand for domestically-produced goods and services, labor demand, and business investment.

The US Dollar Index (DXY), which gauges Greenback’s value against six major currencies, climbs to near 105.90, the highest level seen in more than four months.

Meanwhile, investors shift focus to the US Consumer Price Index (CPI) data for October, which will be published on Wednesday. Economists expect the headline inflation to have accelerated to 2.6% from 2.4% in September, with core CPI – which excludes volatile food and energy prices – rising steadily by 3.3%.

The Australian Dollar (AUD) underperforms on Tuesday even though the Reserve Bank of Australia (RBA) is not expected to cut its Official Cash Rate (OCR) in the near term. The RBA is more focused on diminishing upside risks to inflationary pressures, with officials remaining confident over stability in the labor market.

The Australian Dollar (AUD) traded with a heavy bias amid disappointment with Chinese stimulus post-NPC while higher UST yields, USD weighed. AUD was last seen at 0.6545 levels, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Mild bullish momentum on daily chart is fading

“Near term, policy uncertainties associated with Trump presidency may continue to see swings in AUD but also, lack of impactful Chinese stimulus may well influence AUD volatility more.”

“Mild bullish momentum on daily chart is fading while RSI looks to head lower. Risks skewed to the downside for now. Support at 0.6490/0.6510 levels (recent low). Resistance at 0.6630/50 levels (21, 200 DMAs), 0.6690/0.6720 levels (50, 100 DMAs).”

“Data focus this week on wage price index (Wed), labour market report (Thu).”

• AUD/USD remains under some selling pressure for the third straight day amid a bullish USD.
• Fears about Trump’s potential protectionist tariffs on China further undermine the Aussie.
• The technical setup favors bearish traders and supports prospects for further near-term losses.

The AUD/USD pair attracts sellers for the third successive day on Tuesday and slides back below mid-0.6500s during the first half of the European session.

The US Dollar (USD) buying remains unabated in the wake of expectations that US President-elect Donald Trump's policies will spur economic growth and boost inflation, which could limit the scope for the Federal Reserve (Fed) to ease its policy. Adding to this, concerns about Trump's potential protectionist tariffs on China undermine the China-proxy Australian Dollar (AUD) and exert additional pressure on the AUD/USD pair.

From a technical perspective, last week's failure near the 100-day Simple Moving Average (SMA) and the subsequent slide back below the 61.8% Fibonacci retracement level of the August-September rally favors bearish traders. Moreover, negative oscillators on the daily chart suggest that the AUD/USD pair could slide further towards challenging the lowest level since August 8, around the 0.6515-0.6510 region touched last week. 

Some follow-through selling below the 0.6500 psychological mark should pave the way for a decline towards the next relevant support near the 0.6475-0.6470 area. The AUD/USD pair could eventually drop to the 0.6400 mark and extend the downward trajectory towards the 0.6350-0.6345 region, or the year-to-date (YTD) low touched in August. 

On the flip side, any attempted recovery might now confront stiff resistance and meet with a fresh supply ahead of the 0.6600 round-figure mark. A sustained strength beyond might trigger a short-covering rally towards the 0.6635 area or the 200-day SMA. The AUD/USD pair could climb further towards retesting the 100-day SMA strong barrier, currently pegged near the 0.6685-0.6690 region, en route to the 50-day SMA, near the 0.6715-0.6720 area.

AUD/USD daily chart

The Australian Dollar (AUD) is likely to trade in a 0.6555/0.6595 range. In the longer run, outlook is mixed; AUD could trade in a choppy manner between 0.6515 and 0.6690, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.  

AUD can reach 0.6515 near term

24-HOUR VIEW: “We indicated yesterday that AUD ‘could decline to 0.6550 before stabilisation is likely.’ We also indicated that ‘any further decline is unlikely to reach 0.6515.’ Our view did not turn out as AUD traded in a relatively quiet manner between 0.6564 and 0.6599. AUD closed slightly lower by 0.14% (0.6574). While the price movements appear to be part of range trading phase, the soft underlying tone suggests AUD is likely to trade in a lower range of 0.6555/0.6595.”

1-3 WEEKS VIEW: “Our update from yesterday (11 Nov, spot at 0.6585) is still valid. As highlighted, the recent pronounced but short-lived price movements have resulted in a mixed outlook. AUD could continue to trade in a choppy manner, likely between 0.6515 and 0.6690.”

• AUD/USD trades sideways below 0.6600 with a focus on US/Aussie data.
• Trump’s victory keeps the US Dollar on the frontfoot.
• The Australian jobless rate is expected to remain steady at 4.1%.

The AUD/USD pair trades in a tight range slightly below the key resistance of 0.6600 in Monday’s European session. The Aussie pair consolidates as investors await the United States (US) Consumer Price Index (CPI) and the Australian Employment data for October, which will be released on Wednesday and Thursday.

Market sentiment appears to be asset-specific as risk-perceived currencies are facing pressure, while US equities gain sharply. S&P 500 futures have posted significant gains in the European session. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, revisits a more than four-month high of 105.45.

Economists expect the annual headline inflation data to have accelerated to 2.6% from 2.4% in October, with core CPI rising steadily by 3.3%.

The Greenback remains broadly firm on Republican Donald Trump’s victory in the US presidential elections who is expected to raise import tariffs universally by 10%, a scenario that will boost inflationary pressures and fiscal deficit, which will force the Federal Reserve (Fed) to return to hawkish interest rate stance.

Meanwhile, the Australian employment report is expected to show that the economy added 25K workers in October, lower than 64.1K in September. The Unemployment Rate is expected to remain steady at 4.1%. The employment data will influence market expectations for the Reserve Bank of Australia (RBA) monetary policy action in the December meeting. Last week, the RBA left its key Official Cash Rate (OCR) unchanged at 4.35% but maintained a hawkish guidance on interest rates.

• AUD/USD edges lower to near 0.6580 in Monday’s early Asian session. 
• The weaker Chinese economic data and Trump’s proposals to raise tariffs drag the China-proxy Aussie lower. 
• The preliminary University of Michigan's Consumer Sentiment Index came in better than expected in November.

The AUD/USD pair remains under selling pressure around 0.6580 during the early Asian session on Monday. The weaker-than-expected Chinese economic data and Trump tariff weigh on the China-proxy Australian Dollar (AUD) against the Greenback. The US October Consumer Price Index (CPI) and Australian employment data will be the highlights for this week. 

China's CPI inflation rose at the slowest pace in four months in October, while Producer Price deflation deepened, the National Bureau of Statistics of China showed on Saturday. The slowdown comes as Chinese authorities seek to boost domestic activity as a property crisis weighs on confidence. Furthermore, Donald Trump’s proposals to raise tariffs on Chinese goods might exert some selling pressure on the Aussie as China is a major trading partner to Australia. 

On the other hand, the preliminary University of Michigan's Consumer Sentiment Index improved to 73.0 in November from 70.5 in October, better than the market expectation of 71.0. This upbeat report has boosted the Greenback broadly. 

Investors expect a less dovish Federal Reserve (Fed) as Trump will likely follow through with his plans to enact significant tariffs. This might prompt inflation and will keep the Fed from cutting rates as much as the officials would have, which could boost the USD.