AUD/USD trades cautiously around 0.6450 ahead of RBA minutes

• AUD/USD struggles around 0.6450 as the US Dollar performs strong broadly.
• Trump's economic agenda is expected to boost price pressures.
• Investors await the RBA minutes for fresh interest rate guidance.

The AUD/USD pair trades with caution near 0.6450 in Monday's European session. The Aussie pair finds temporary support but struggles to gain ground as the US Dollar (USD) remains broadly firm. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, edges lower to near 106.50 in European trading hours but remains close to its annual high of 107.00.

The optimism over President-elected Donald Trump implementing its economic agenda in his administration has kept the US Dollar on the frontfoot. Donald Trump is expected to levy hefty tariffs on imports and lower taxes, which will accelerate inflationary pressures and force the Federal Reserve (Fed) to follow a more gradual policy-easing approach.

Also, Fed Chair Jerome Powell said on Thursday that the economy has not sent any signals, which strain on cutting interest rates aggressively. However, he commented that price pressures remain on a sustainable path towards the bank's target of 2%, which allows us to continue heading towards the neutral rate.

For the last policy meeting of this year, traders see a 65% chance that the Fed will cut interest rates by 25 basis points (bps) to 4.25%-4.50%, according to the CME FedWatch tool.

Meanwhile, the next move in the Australian Dollar (AUD) will likely occur on Tuesday after the release of the Reserve Bank of Australia (RBA) minutes of the monetary policy that took place on November 5. In the policy meeting, the RBA left its Official Cash Rate (OCR) unchanged at 4.35% and Governor Michelle Bullock delivered a hawkish interest rate guidance with concerns over upside risks to inflationary pressures.