AUD/USD seems more downside below 0.6520 as US Dollar trades firmly

• AUD/USD struggles to hold the immediate support of 0.6520 as the US Dollar demonstrates strength.
• A slight ease in Fed dovish expectations has supported the US Dollar.
• Investors await the US PCE inflation and the RBA monetary policy announcement.

The AUD/USD pair seems vulnerable near an over two-week low around 0.6520 during the European trading session on Friday. The Aussie pair weakens as the US Dollar (USD) demonstrates strength, following a decline in market expectations for more interest rate cuts by the Federal Reserve (Fed) in the policy meetings remaining this year.

During the press time, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades firmly near its fresh four-week high around 98.40 posted on Thursday.

According to the CME FedWatch tool, the probability of the Fed cutting interest rates by 50 bps by the year-end eased to 62% from 78.6% seen a week ago.

Fed dovish expectations have trimmed lately as a majority of officials have expressed caution on further interest rate cuts, citing upside inflation risks.

In Friday's session, investors will focus on the United States (US) Personal Consumption Expenditure Price Index (PCE) data for August, which will be published at 12:30 GMT. The US core PCE inflation, which is Fed's preferred inflation gauge, is estimated to have grown at a moderate pace of 0.2% on a monthly basis against the prior reading of 0.3%, with yearly figures rising steadily by 2.9%.

Meanwhile, the next trigger for the Australian Dollar (AUD) will be the monetary policy announcement by the Reserve Bank of Australia (RBA) on Tuesday. The RBA is expected to hold its Official Cash Rate steady at 3.6%.