Consumer Confidence Slips But Remains Net Positive

AUD/USD struggled for a clear direction in the early part of Tuesday trade, before a beat in U.S. PPI dragged the pair lower in NY hours. The data came out as FOMC members were debating their next monetary policy decision, to be announced on Wednesday.

• Westpac Consumer Confidence fell to 104.3 in December from 105.3 prior but "remains comfortably in positive territory where optimists outnumber pessimists." States hit hardest by the recent outbreaks of Covid-19 reported most significant declines.
• Thursday brings the release of Australia's consumer inflation expectations and labour market report, as well as speeches from RBA's Lowe and Kearns.
• AUD/USD trades flat at $0.7105 at typing. A break under Dec 7 low of $0.7040 would allow bears to take aim at Dec 3, 2021/Nov 2, 2020 lows of $0.6993/91. Bulls keep an eye on Dec 9 high of $0.7187, followed by former channel base around the $0.7300 mark.