• Australian Dollar loses ground on lower S&P/ASX 200, following overnight losses on Wall Street.
• Australian Weekly Consumer Confidence remained nearly unchanged at 83.2.
• US Dollar could face a challenge as US yields retrace recent gains.
• US President Joe Biden will meet the four Congressional leaders to discuss the bipartisan national security supplemental.

The Australian Dollar (AUD) continues its downward trend for the second consecutive day due to the lower S&P/ASX 200, tracking overnight losses on Wall Street. Declines in property and mining stocks outweigh gains in consumer-related sectors, contributing to overall market pessimism. Additionally, investors are exercising caution ahead of key economic data releases from Australia and the United States (US), seeking insights into the monetary policy outlook for both countries.

Australian Consumer Confidence, as measured by ANZ-Roy Morgan, remained nearly unchanged at 83.2 for the current week. This marks the 56th consecutive week that the index has remained below the threshold of 85. The index sits just 0.4 points below the 2024 weekly average of 83.6. Investors are now looking forward to the release of the Australian Monthly Consumer Price Index on Wednesday and Retail Sales data on Thursday for further insights into the economic landscape.

The US Dollar Index (DXY) remains steady, having stabilized after recent declines despite the uptick in US yields, possibly reflecting improved risk sentiment. The Federal Open Market Committee (FOMC) minutes suggested a reaffirmation of a data-dependent approach by the Federal Reserve (Fed), signaling a more dovish stance that has put pressure on the US Dollar (USD). Investors will closely watch key economic indicators including Gross Domestic Product Annualized (Q4), Core Personal Consumption Expenditures, and the Fed Monetary Policy Report scheduled for later this week