AUD/USD jumps to near 0.6330 as concerns over US economic growth deepen

• AUD/USD climbs to near 0.6330 amid deepening concerns over the US economic outlook.
• Investors see US economic shocks in near term amid Trump's tariff agenda.
• Soft China inflation data to dampen the Aussie Dollar's outlook.

The AUD/USD pair rises sharply to near 0.6330 in North American trading hours on Monday. The Aussie pair attracts significant bids as the US Dollar (USD) trades cautiously, with investors turning cautious over the United States (US) economic outlook. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades around 103.50, the lowest level seen in four months.

The S&P500 is down almost 1.5% in the North American session, indicating a significant decline in investors' risk appetite.

Market participants have become increasingly concerned over US growth prospects after commentary from US President Donald Trump on Friday that there is a "period of transition", because what we are doing is very "big" in an interview with Fox News. Investors have taken Trump's comments as a signal to an economic turbulence in the near term.

Additionally, weakness in a slew of economic data released lately has also flagged uncertainty over the US economic path. The US Consumer Confidence slumped to 15-month low, the ISM Manufacturing New Orders Index declined and the Unemployment Rate accelerated in February.

Meanwhile, the Australian Dollar (AUD) trades higher despite faster-than-expected slowdown in the China's Consumer Price Index (CPI) data for February. Month-on-month CPI deflated by 0.2% after growing by 0.7% in January. Economists expected the inflation data to have deflated by 0.1%. On year, the CPI declined by 0.7% against estimates of 0.5% deflation. Persistently lower inflationary pressures indicate significant weakness in the Chinese economy. Such a scenario is unfavorable for the Aussie Dollar, knowing that Australia relies heavily on exports to China.

This week, the Australian economic calendar will be light. Therefore, investors will pay close attention to the US data to project the next move in the Aussie pair. Investors will focus closely on the US CPI data for February, which will be released on Wednesday.