AUD/USD trims gains and nears 0.6500 on hesitant markets

• The Aussie pulls back from weekly highs against the US Dollar, although it remains above 0.6500.
• Hawkish comments by RBA's Hauser and strong Australian consumer sentiment have supported the AUD.
• Investors are looking from the sidelines, awaiting news on US government funding.
  

The Australian Dollar is trading moderately lower against the US Dollar on Tuesday, retreating from Monday's highs at 0.6540, and reaching session lows at 0.6514 during the European morning session. A mild risk-on mood is failing to provide significant support to the Aussie, although the flat US Dollar Index is keeping the AUD close to weekly highs

News that the US Senate passed a bill to resume US government funding and end the largest shutdown in history boosted risk appetite during Monday's US session. Investors, however, seem to be looking from the sidelines on Tuesday, awaiting further developments to place directional bets.

Hawkish RBA comments support the Aussie

Also on Monday, the Reserve Bank of Australia Deputy Governor, Andrew Hauser, provided a fresh boost to the Aussie, highlighting the country's economic recovery, and warning that further monetary easing would reignite inflationary pressures.

The latest Wersrtpac Consumer Sentiment figures, released on Monday, revealed a 12.8% improvement to 103.8 in November,  reversing the 3.8% decline posted in October and endorsing Hauser's comments about a brighter economic outlook.

In the US, Federal Reserve (Fed) speakers remained divided about the forward guidance, while on Tuesday, all eyes are on the development of the US government funding bill, which will be sent to the House of Representatives. The House's Republican majority is expected to approve it seamlessly, before US President Donald Trump signs it, probably on Wednesday.