**AUD/USD Struggles to Extend Gains as Mixed Signals Keep Traders Cautious**

The Australian Dollar has faced mounting pressure over the past four trading sessions, with AUD/USD hovering around the 0.6630 level and showing limited appetite for further downside despite a confluence of headwinds. For perspective, 300 AUD currently converts to approximately 199 USD at these levels, reflecting the currency pair's recent softness.

**Economic Weakness and Risk-Off Sentiment Pressure the AUD**

Last week's disappointing Australian employment figures have set a negative tone for the Aussie, compounded by weaker-than-expected Chinese economic data released earlier this week. The world's second-largest economy continues to disappoint investors, with softer macro readings fueling broader concerns about global growth. This risk-averse environment has particularly burdened the Australian Dollar, traditionally viewed as a higher-yielding, risk-sensitive currency. Simultaneously, equity markets have turned softer globally, reinforcing the cautious mood that weighs on the AUD.

**Divergent Policy Paths Provide Crucial Support**

What's preventing a steeper AUD/USD decline is the sharp divergence in monetary policy expectations between the Reserve Bank of Australia and the Federal Reserve. RBA Governor Michele Bullock signaled last week that further rate reductions may not be warranted and hinted at potential tightening if economic conditions require it. This hawkish messaging stands in stark contrast to growing market expectations for additional Fed rate cuts. The US Dollar Index, which measures the Greenback's strength against major currencies, has retreated to its weakest levels since early October, trading near 101.50 levels amid bets for increased Fed accommodation.

**Fed Transition Adds to USD Weakness**

Market participants are also pricing in the possibility of a more dovish Federal Reserve leadership transition, with speculation surrounding potential changes to the central bank's policy stance under different leadership. This dynamic continues to pressure the US Dollar and acts as an underlying support mechanism for AUD/USD buyers.

**Technical Outlook Hinges on NFP Release**

Traders appear hesitant to commit to aggressive positions ahead of this week's critical US Nonfarm Payrolls report, which was delayed last month. The employment data could prove decisive in confirming whether AUD/USD's three-week recovery rally has legs or faces a genuine reversal. Until the NFP crosses the wires, the pair is likely to remain range-bound, with the current support around 0.6600-0.6620 likely to hold firm against further deterioration.