AUD/USD edges up to near 0.6500 ahead of US Durable Goods Orders data

• AUD/USD rises marginally to near 0.6500 as the US Dollar faces slight selling pressure.
• Trump sends termination letter to Fed's Cook over mortgage allegations.
• The RBA signaled more interest rate cuts this year.

The AUD/USD pair ticks higher to near the psychological level of 0.6500 during the European trading hours on Tuesday. The Aussie pair edges up as the US Dollar (USD) faces slight selling pressure, following the release of a letter by United States (US) President Donald Trump stating the termination of Federal Reserve (Fed) Governor Lisa Cook over mortgage allegations.

At the time of writing, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades 0.2% lower to near 98.20.

On late Monday, US President Trump fired Cook from her designation, with immediate effect, for making false statements on one or more mortgage agreements.

However, Cook said that she will continue to carry out her duties as Fed Governor. In a statement shared by her attorneys, "President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so."

Market experts are seeing the event as an attack on Fed's independence for fulfilling his economic agenda. "The concern is the intent of the Trump administration: it's not to preserve Fed integrity, it's to install Trump's own people at the Fed," analysts at Capital.com said, Reuters reported.

Trump had attacked Fed's dignity a several times by threatening to remove Chair Jerome Powell for arguing in favor of holding interest rates steady.

In Tuesday's session, investors will focus on US Durable Goods Orders data for July, which will be published at 12:30 GMT. Economists expect fresh orders for durable goods have declined again, but at a moderate pace of 4%, compared to a 9.3% contraction seen in June.

Meanwhile, the Australian Dollar (AUD) trades broadly stable even as Reserve Bank of Australia (RBA) minutes of the August monetary policy meeting signaled that officials see the need of further interest rate cuts in the remainder of the year. However, the pace of rate cuts would be determined by incoming data and the balance of global risks.