AUD/USD extends the range play around 0.6300 ahead of US PCE Price Index

• AUD/USD continues with its struggle to gain any meaningful traction on Friday. 
• A modest USD uptick and a weaker risk tone act as a headwind for the Aussie. 
• Hopes for more stimulus from China lend support ahead of the US PCE data.

The AUD/USD pair extends its sideways consolidative price move for the fourth straight day on Friday and remains confined in a range around the 0.6300 mark through the first half of the European session. 

The global risk sentiment took a hit in reaction to US President Donald Trump's new tariffs on imported cars and light trucks, announced on Wednesday. Adding to this, Trump's impending reciprocal tariff announcement next week and their impact on the global economy further weigh on investors' sentiment. This, in turn, is seen acting as a headwind for the risk-sensitive Australian Dollar (AUD), which, along with a modest US Dollar (USD) uptick, exerts some pressure on the AUD/USD pair. 

The intraday USD uptick, however, lacks bullish conviction in the wake of the growing acceptance that the Federal Reserve (Fed) will resume its rate-cutting cycle soon. In fact, the markets are now pricing in over a 65% chance that the US central bank would lower borrowing costs by at least 25 basis points in June amid worries about the potential economic fallout from Trump's aggressive trade policies. This might hold back the USD bulls from placing aggressive bets and support the AUD/USD pair. 

Apart from this, hopes for more stimulus from China help limit losses for the Aussie. Traders also seem reluctant to place aggressive directional bets and opt to wait for the release of the US Personal Consumption Expenditure (PCE) Price Index, due later during the North American session. The crucial US inflation data would influence expectations about the Fed's future policy path, which, in turn, will play a key role in driving the USD demand and provide a fresh impetus to the AUD/USD pair.