AUD/USD weakens to near 0.6200 ahead of Chinese Services PMI release

• AUD/USD edges lower to 0.6210 in Monday's early Asian session. 
• Fed officials said the job is not done on inflation. 
• The Aussie remains under pressure amid expectations of RBA rate cuts and Trump tariff threats. 

The AUD/USD pair softens to near 0.6210 during the early Asian session on Monday. The rising bets that the Reserve Bank of Australia (RBA) will be compelled to start cutting interest rates exert some selling pressure on the Australian Dollar (AUD). The Chinese December Services Purchasing Managers Index (PMI) will be the highlight later on Monday. 

After lowering its benchmark rate at three straight meetings, the US Federal Reserve (Fed) is anticipated to pause its easing cycle at the January meeting. Richmond Fed President Thomas Barkin noted on Friday that the Fed's benchmark policy rate should stay restrictive until it is more certain that inflation is returning to its 2% target. Meanwhile, Fed Governor Adriana Kugler and San Francisco Fed President Mary Daly emphasised the delicate balancing act facing US central bankers this year as they look to slow their pace of easing cycle. 

Investors will closely monitor the US employment data for December, which is due later on Friday. This report could offer some hints about the Fed's interest rate outlook in 2025. "Investors are going to want to see confirmation that labour trends remain solid, which means the economic outlook probably remains firm," noted Anthony Saglimbene, chief market strategist at Ameriprise Financial. 

Australia's November Consumer Price Index (CPI), released on Wednesday, will be in the spotlight. If the reading comes in below market expectations, this could trigger the chance of an RBA rate cut at its February meeting, weighing on the AUD. Additionally, the prospect of a trade war between the US and China could undermine the China-proxy Aussie, as China is a major trading partner for Australia.