AUD/USD oscillates below 0.6600 with US Inflation, Aussie Employment in focus

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.