AUD/USD remains weak near 0.6600 amid firmer US Dollar

• AUD/USD trades with mild losses around 0.6605 in Monday's early Asian session. 
• The US Michigan Consumer Sentiment Index was stronger than expected, rising to 70.5 in October vs. 68.9 prior. 
• The hawkish RBA might cap the Aussie's downside. 

The AUD/USD pair remains on the defensive near 0.6605 during the early Asian session on Monday. The downtick of the pair is pressured by the firmer US Dollar (USD) amid the less dovish stance of the Federal Reserve (Fed) and strong University of Michigan (UoM) sentiment data. 

The encouraging US economic data could prompt the Fed to adopt a more cautious stance, lifting the Greenback against the Australian Dollar (AUD). Data released on Friday showed that the US Michigan Consumer Sentiment Index rose to 70.5 in October from 68.9 in the previous reading, beating expectations. Meanwhile, the Durable Goods Orders declined by 0.8% MoM in September, above the market consensus of a 1% decline. 

Furthermore, the elevated tensions in the Middle East and uncertainty around the US presidential election might boost the safe-haven currency like the USD. Israel's early Saturday attack on Iran, coordinated with Washington and limited to missile and air defence sites, was more restrained than many thought and could help diplomatic attempts to release prisoners and prevent fighting in Lebanon and Gaza, per Bloomberg. However, Israel's next steps will probably depend on whether Donald Trump or Kamala Harris wins.

On the other hand, the hawkish remarks from the Reserve Bank of Australia (RBA) could cap the downside for the pair. The RBA is unlikely to cut rates as early as next month. Traders are now pricing in nearly 10% odds of a cut to 4.1% by the RBA on November 5.