AUDUSD is trading around a one-week low, falling for the second day in a row.

AUDUSD sellers assault the 0.6900 support during the market’s cautious tone on Monday, after remarkably rejecting US Dollar strength to register weekly gains in the previous week.

Australian employment data is especially relevant to AUDUSD since the RBA remains hawkish.

Reserve Bank of Australia’s (RBA) hawkish rise in the previous week helped the AUDUSD to remain higher, but the cautious attitude and anticipation of a gloomy Aussie employment report, contrasted firmer US inflation data, seemed to entice AUDUSD bearish. Moving on, a light calendar on Monday emphasizes risk triggers as the key for AUDUSD traders to watch for unambiguous movements.

Market is concerned about the “unidentified objects” passing over the United States and China.

Anxiety over “unidentified objects” flying over US and Chinese airspace, as well as US Federal Reserve (Fed) meetings, contributed to the market’s cautious tone. The risk barometer pair may also be influenced by the pre-data atmosphere ahead of the release of the US Consumer Price Index (CPI) for January on Tuesday. The shots of mysterious objects in the United States and China, with the White House accusing China of espionage, appear to be weighing on market sentiment and the risk-barometer AUDUSD pair.

Recently, the US General enabled Australian purchasers to take a breather while stating that they had no plans to do so Reason to believe that the most recent things are Chinese.

It’s worth mentioning that the US shot down roughly four such objects, while China is preparing to shoot down one in less than a week.

The Fed’s rhetoric looks to be divided ahead of the important US CPI.

Federal Reserve President Patrick Harker, on the other hand, pushed back talk of a Fed rate decrease in 2023. However, the policymaker did state that the “Fed is unlikely to reduce this year but may be able to in 2024 if inflation begins to fall.” Harker’s remarks were consistent with those of Fed Chairman Jerome Powell and Richmond Federal Reserve (Fed) President Thomas Barkin, who had earlier refrained from applauding the strong US jobs data.

Alternatively, the majority of Fed Governors and US diplomats, including US President Joe Biden and Treasury Secretary Janet Yellen, have ruled out the possibility of a US recession issues and seem hawkish on the Federal Reserve.

As a result, Fed officials are caught in a bind, making this week’s US inflation statistics all the more significant. Nonetheless, early readings of the US University of Michigan (UoM) Consumer Sentiment for February increased to 66.4 from 65.0 predicted and 64.9 before.

Furthermore, the University of Michigan reported that year-ahead inflation forecasts rose to 4.2% this month, up from 3.9% in January and 4.4% in December.

Long-run inflation forecasts (5-year) remained at 2.9% for the third consecutive month and have remained within the tight 2.9-3.1% range for 18 of the past 19 months,” the University of Michigan said. Furthermore, the US Bureau of Labor Statistics said on Friday that the monthly Consumer Price Index (CPI) for December had been lowered to Based on new seasonal adjustment parameters, the rate increased from -0.1% to +0.1%.