• During Monday’s early Asian session, the edges of AUD/USD decreased to around 0.6580.
• Weaker economic data from China and Trump’s proposals to raise tariffs are pushing China’s Aussie proxy down.
• The University of Michigan’s preliminary consumer sentiment index was better than expected in November.

The AUD/USD pair remains under selling pressure around 0.6580 during Monday’s early Asian session. Weaker-than-expected Chinese economic data and Trump’s tariffs are weighing on the Chinese Australian dollar (AUD) against the US dollar. The most vital events this week will be the October Consumer Price Index (CPI) in the US and employment data in Australia.

China’s National Bureau of Statistics showed on Saturday that China’s CPI inflation rose at its slowest pace in four months in October, while producer price deflation deepened. The slowdown comes as Chinese authorities seek to stimulate domestic activity amid a real estate crisis that is hurting confidence. Moreover, Donald Trump’s proposals to raise tariffs on Chinese goods may put some sales pressure on the Australian, as China is Australia’s main trading partner.

On the other hand, the University of Michigan’s preliminary Consumer Sentiment Index improved to 73.0 in November from 70.5 in October, better than market expectations of 71.0. This upbeat report essentially strengthened the dollar.

Investors expect less dovish action from the Federal Reserve (Fed) as Trump is likely to move forward with his plans to impose significant tariffs. This could trigger inflation and prevent the Fed from cutting interest rates as much as officials would, which could strengthen the USD.