Ella 
In early Asian trading on Tuesday, the downside of AUD/USD expanded to above the mid-range of 0.6600. Risk-off sentiment across the market boosted the safe-haven US dollar and weighed on AUD/USD. As of press time, the Australian dollar was trading at 0.6660 against the US dollar, up 0.02% on the day.
Raphael Bostic, president of the Federal Reserve Bank of Atlanta (Fed), believes that interest rates need to be kept at least until the summer to prevent prices from rising again. Bostic added that inflation could “snap back and forth” if policymakers begin to ease policy too early, warning that progress toward the central bank’s 2 percent target could slow in the coming months.
Concerns about geopolitical risks dominated sentiment among market participants. A U.S.-carried and operated container ship was hit on Monday by an anti-ship ballistic missile coming from an area controlled by Houthi rebels in Yemen, according to U.S. Central Command. Just a few days ago, the United States and Britain launched a joint attack on Houthi targets in Yemen.
In terms of the Australian dollar, Australia’s TD Securities annual inflation rate rose to 5.2% in December from 4.4% in November. At the same time, ANZ’s job advertisements increased by 0.1% month-on-month, compared with a decrease of 5.1% in the previous month.
Traders will focus on Australia’s Westpac Consumer Confidence Index for January and the U.S. New York Empire State Manufacturing Index due later on Tuesday. In addition, Federal Open Market Committee official Waller will speak. Market participants will take cues from the data and look for AUD/USD trading opportunities there.
