The Reuters/Michigan Consumer Sentiment Index failed to achieve market expectations with the index recording 72.8 in December. Although this represents a moderate increase from the previous month - the latest result fell short of a recording of 74 expected.
The lull in risk appetite by default saw the higher yielding currencies turn south as investors preferred the perceived safety of the low yielding heavy weights, the US Dollar and Yen. Continuing on from Friday's domestic session, the Aussie dollar extended losses falling to lows of 92.15 US Cents and remains in the low 92's in early trade.
Locally, this morning TD Securities/ Melbourne Institute will release a monthly inflation report which may add further weight for a fourth consecutive interest rate hike. Expect Aussie dollar activity to reactive to this morning's inflation data, as traders hunt for clues on the impending rates decision when the RBA reconvenes in February. November's release saw the inflation gauge show 0.3 percent growth, representing an annual inflation rate of 2.1 percent.