AUD/USD holds below 0.6600 as Trump tariff threat looms

• AUD/USD edges lower to near 0.6580 in Monday's early Asian session. 
• The weaker Chinese economic data and Trump's proposals to raise tariffs drag the China-proxy Aussie lower. 
• The preliminary University of Michigan's Consumer Sentiment Index came in better than expected in November.

The AUD/USD pair remains under selling pressure around 0.6580 during the early Asian session on Monday. The weaker-than-expected Chinese economic data and Trump tariff weigh on the China-proxy Australian Dollar (AUD) against the Greenback. The US October Consumer Price Index (CPI) and Australian employment data will be the highlights for this week. 

China's CPI inflation rose at the slowest pace in four months in October, while Producer Price deflation deepened, the National Bureau of Statistics of China showed on Saturday. The slowdown comes as Chinese authorities seek to boost domestic activity as a property crisis weighs on confidence. Furthermore, Donald Trump's proposals to raise tariffs on Chinese goods might exert some selling pressure on the Aussie as China is a major trading partner to Australia. 

On the other hand, the preliminary University of Michigan's Consumer Sentiment Index improved to 73.0 in November from 70.5 in October, better than the market expectation of 71.0. This upbeat report has boosted the Greenback broadly. 

Investors expect a less dovish Federal Reserve (Fed) as Trump will likely follow through with his plans to enact significant tariffs. This might prompt inflation and will keep the Fed from cutting rates as much as the officials would have, which could boost the USD.