AUD/USD gathers strength to near 0.6550 on weaker US Dollar

• AUD/USD edges higher to 0.6540 in Monday's early Asian session, up 0.66% on the day. 
• The US S&P Global Composite PMI climbed to 55.3 in November's flash estimate vs. 54.1 prior. 
• Australia's flash Judo Bank Composite PMI surprisingly contracted in November.

The AUD/USD pair attracts some buyers to near 0.6540 during the early Asian session on Monday. The US Dollar Index (DXY) declines slightly after reaching a new two-year high despite the strong US S&P Purchasing Managers Index (PMI) data. Later on Monday, the US Chicago Fed National Activity Index for October and the Dallas Fed Manufacturing Business Index for November will be released. 

The upbeat US November PMI failed to boost the Greenback. Data released by S&P Global showed on Friday that the US S&P Global Composite PMI climbed to 55.3 in November's flash estimate from 54.1 in October. Meanwhile, the Manufacturing PMI improved to 48.8 in November versus 48.5 in October but remains in contraction. The Services PMI rose to 57.0 in November from 55.0 in the previous reading, beating the estimation of 55.3. 

However, the rising expectation of less aggressive rate reductions from the Federal Reserve (Fed) might support the USD. Futures traders are now pricing in 50.9% odds that the Fed will cut rates by a quarter point, down from around 69.5% a month ago, according to data from the CME FedWatch Tool. 

On the Aussie front, the Australian flash Judo Bank Composite PMI surprisingly contracted in November, falling to 49.4 in November versus 50.2 prior. A figure below the 50.0 threshold is considered a contraction in economic activities. The Manufacturing PMI improved to 49.4 in November from 47.3 in October, while the Services PMI eased to 49.6 in November from the previous reading of 51.0.