On Monday morning, the AUD/USD pair encounters support above the 0.6500 level during the early Asian session. The combination declines in response to the continued strength of the US Dollar (USD). The Australian monthly Consumer Price Index (CPI) for February and the US gross domestic product (GDP) for the fourth quarter will be closely observed by investors. As of press time, the AUD/USD pair is trading at 0.6512, reflecting a daily loss of 0.03%.

Policymakers at the US Federal Reserve (Fed) have signaled that they will be able to reduce interest rates once they have gained assurance that inflation is making steady progress towards the objective of 2.0%. During the press conference, Fed Chair Jerome Powell stated that an unexpected rise in unemployment could force the agency to reduce interest rates. Additionally, the Fed maintained its earlier dot plot-based forecast of three rate decreases before the end of the year.

Conversely, China's Premier Li Qiang stated on Sunday that ample capacity exists for macro policy due to the country's low inflation and central government debt ratio. One trillion yuan worth of ultralong special treasury bonds will be issued by the Chinese government in an effort to stabilize economic development and support investment. In addition, the Chinese government will strive to prevent systemic hazards and promote the economy's sustainable and long-term growth. Additional favorable developments concerning Chinese macro policy and stimulus measures may strengthen the Australia Dollar (AUD), which serves as a proxy for China, in relation to the US dollar.

Market participants, we shall closely monitor the Australian CPI inflation data scheduled for release on Wednesday. The previous reading of 3.4% for February is anticipated to be revised up to 3.6% year-on-year. The Australian February Retail Sales and the US Fourth Quarter GDP growth figures are scheduled to be released on Thursday. Ahead of Friday's Good Friday holiday, traders will identify trading opportunities in the AUD/USD pair in response to these occurrences.