• AUD/USD remains flat after early dip, with improved market mood and speculations on Fed rate cuts impacting the USD.
• Dallas Fed President's remarks on potential rate hike contrast with declining US inflation expectations in NY Fed survey.
• Investors eye upcoming speeches by Fed officials and key Australian economic indicators, including Building Permits and Retail Sales.

The AUD/USD turned flat during the mid-North American session on Monday after hitting a daily low of 0.6677, but an improvement in traders' appetite weakened the Greenback (USD). Additionally, speculations that the US Federal Reserve (Fed) would cut rates in 2024 remain shy, a headwind for the USD. At the time of writing, the pair trades at 0.6713, almost flat.

AUD/USD hovers at around 0.6710s as market sentiment and expectations of a dovish Fed, weighs on the US Dollar

Wall Street began the week on a positive note, except for the Dow Jones, dragged lower by Boeing’s 737 Max 9 issues that grounded airplanes worldwide. Investors seem confident they would ease monetary policy during the year despite Dallas Fed President Lorie Logan's comments not to rule out another rate hike, as financial conditions had eased. She added that the US central bank should consider slowing its asset runoff.

Data-wise, the US economic docket was scarce, as the New York (NY) Fed revealed in its Survey of Consumer Expectations, which witnessed households downward, revising inflation expectations for one year, to 3%, its lowest level since January 2021. Estimates for three and five years were lowered to 2.6% from 3% and 2.5% from 2.7%, both readings lower than November’s.

Ahead of the week, the US economic docket will feature a speech by the Atlanta Fed President Raphael Bostic at around 17:30 GMT. On the Australian front, the docket will feature Building Permits and Retail Sales, both data for November on its preliminary readings