AUD likely consolidate in near term

As pressure on AUDUSD from commodity weakness is partly offset by reduced rate cut prospects and improving domestic conditions, the pair is expected to be broadly range-bound in the short term.

With lower commodity prices expected to offset stronger export volumes, a marginally larger trade deficit of AUD 3.4 billion is expected in November (scheduled on Thursday). However, signs of recovery are seen as Australia's November Nominal Retail Trade on Friday is expected to rise to +0.7% m/m (Barclays Research), consensus 0.4%.

"Retail conditions had been more favourable recently and a range of other indicators pointed to some strengthening in the pace of household consumption growth since the middle of the year" - RBA