AUD/USD consolidates around the 0.6600 mark on the softer USD

AUD/USD oscillates near 0.6600 amid the risk rally in the market.
US University of Michigan consumer sentiment rose in January to its highest since July 2021.
The Australian Unemployment Rate came in at 3.9% in December vs. 3.9% prior; Employment Change arrived at -65.1K vs. 17.6K expected.
The US GDP growth numbers (Q4) and the Core PCE will be the highlights this week.

Lallalit Srijandorn FXStreet

The AUD/USD pair consolidates around the 0.6600 mark during the early Asian session on Monday. The pair benefits from a risk rally in global markets. However, the escalating geopolitical tension in the Middle East might lift the safe-haven US Dollar (USD) and might cap the upside of the AUD/USD. The pair currently trades around 0.6595, losing 0.03% on the day.

The US Michigan Consumer Sentiment Index rose to 78.8, the highest level since July 2021. The assessment of current economic conditions grew to 83.3, and the expectations component climbed to 75.9. FOMC committee members enter the black-out period as they prepare for its January meeting. Investors await the December Core Personal Consumption Expenditures Price Index (Core PCE) for fresh impetus. The monthly and annual Core PCE are expected to show an increase of 0.2% MoM and 3% YoY, respectively.

The US has continued to launch attacks on Houthi targets in Yemen. Concerns over the escalation of the Middle East war intensified as Iran carried out missile attacks on an alleged Israeli spy site in northern Iraq, as well as a strike on Pakistan targeting another militant group. This, in turn, might boost a safe-haven asset like the Greenback and weigh on the AUD/USD pair.

On the Aussie front, the Australian Bureau of Statistics (ABS) revealed last week that the nation’s Unemployment Rate came in at 3.9% in December, compared with expectations of 3.9% and the previous figure of 3.9%. Meanwhile, the Employment Change arrived at -65.1K in December, compared with the market consensus of 17.6K and 61.5K jobs added in November.

In the absence of top-tier economic data from the Australian docket this week, risk sentiment will likely play a pivotal role and influence the pair. The preliminary US Gross Domestic Product Annualized (GDP) for the fourth quarter will be released on Thursday, and the Core PCE will be due on Friday. These figures could give a clear direction to the AUD/USD pair.

AUD/USD

Overview
Today last price	0.6597
Today Daily Change	-0.0001
Today Daily Change %	-0.02
Today daily open	0.6598

Trends
Daily SMA20	0.6713
Daily SMA50	0.665
Daily SMA100	0.6519
Daily SMA200	0.6581

Levels
Previous Daily High	0.6602
Previous Daily Low	0.6565
Previous Weekly High	0.6705
Previous Weekly Low	0.6525
Previous Monthly High	0.6871
Previous Monthly Low	0.6526
Daily Fibonacci 38.2%	0.6588
Daily Fibonacci 61.8%	0.6579
Daily Pivot Point S1	0.6575
Daily Pivot Point S2	0.6552
Daily Pivot Point S3	0.6539
Daily Pivot Point R1	0.6611
Daily Pivot Point R2	0.6625
Daily Pivot Point R3	0.6648

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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