AUD/USD holds steady near 0.6250 ahead of RBA Minutes

• AUD/USD flatlines near 0.6250 in Monday's early Asian session. 
• The US PCE inflation reports came in softer than the expectations in November, weighing on the USD. 
• The rising bets for RBA rate cuts next year could undermine the Aussie. 

The AUD/USD pair trades on a flat note around 0.6250 during the early Asian session on Monday. Traders brace for the Reserve Bank of Australia (RBA) Minutes released on Monday for some insight into the interest rate outlook. 

The softer-than-expected US Personal Consumption Expenditures (PCE) Price Index report dragged the US dollar (USD) lower on Friday. Data released by the US Bureau of Economic Analysis (BEA) on Friday showed that headline PCE rose 2.4% YoY in November versus 2.3% prior, below the market consensus of 2.5%. 

Meanwhile, the Core PCE, which excludes volatile food and energy prices, climbed 2.8% in the same period, matching October's reading but below the estimation of 2.9%. The core PCE Price Index increased by 0.1% MoM in November. The report comes just two days after the US Federal Reserve (Fed) lowered its benchmark interest rate by 25 basis points (bps) to a target range of 4.25%-4.50%.

On the other hand, the RBA kept the Official Cash Rate (OCR) at 4.35% earlier in December. The rate has not changed since November last year. RBA governor Michele Bullock emphasized the ongoing strength in the jobs market as a reason why the RBA has lagged comparable nations in beginning its monetary easing cycle. However, the rising expectation that the Australian central bank will cut the interest rate in February could weigh on the Aussie.