The AUD/USD pair remains stable above the immediate support of 0.6520 following the release of mixed US Personal Consumption Expenditure (PCE) inflation data for June.

Mixed Inflation Data:

• Headline PCE inflation: Decelerated to 2.5% year-on-year as expected, from 2.6% in May.
• Core PCE inflation: Remained steady at 2.6% year-on-year, above the 2.5% forecast.  
• Monthly figures: Headline PCE rose by 0.1% as expected, while core PCE grew at a faster pace of 0.2%.

The sticky core PCE inflation figures could potentially dampen market expectations of Fed rate cuts in September. However, traders are now looking towards the upcoming Fed monetary policy meeting on Wednesday for further guidance.

Australian Dollar Outlook:

The Australian Dollar (AUD) has been under pressure for over a week due to concerns about the global growth outlook and its impact on iron ore prices, a major Australian export. The weaker-than-expected Q2 GDP growth in China and the lack of substantial stimulus measures in the Third Plenum have further weighed on the AUD.  

Looking ahead, the Q2 Consumer Price Index (CPI) data will be crucial for determining whether the Reserve Bank of Australia (RBA) will raise interest rates further this year.