AUD/USD flows: Dragged by regional sentiment

Over the weekend, US Central Command reported that forces had conducted strikes on four Houthi cruise missiles. Even it does not look like a direct struck to Iran, very likely such tit-for-tat retaliation will further escalate. The December Australian export and import both improves, with import turning to positive territory. At the same time, Chinese Caixin PMI is showing a slower pace of growth than December, 13th month in a row. 

Regional risk seems to be taking a harder beating than global equities and see AUD/USD dipped to 0.6486 before retracing some gains to trade 0.08% lower for the session at 0.6507.