AUD/USD holds below 0.6500 despite Powell's dovish tone

• AUD/USD softens to around 0.6485 in Monday's early Asian session. 
• Fed Chair Powell hinted at a possible September rate cut. 
• RBA Meeting Minutes will be published later on Tuesday.

The AUD/USD pair loses ground to near 0.6485 during the early Asian session on Monday. The potential downside for the Australian Dollar (AUD) might be limited amid the prospect of a Federal Reserve (Fed) September rate cut following comments from Fed Chair Jerome Powell at the Jackson Hole symposium.

The Fed's Powell on Friday signaled a possible interest rate cut at the US central bank's meeting in September, saying that risks to the job market were rising but also noting inflation remained a threat and that a decision wasn't set in stone. Powell further stated that the US central bank still believes it may not need to tighten policy solely based on uncertain estimates that employment may be beyond its maximum sustainable level.

According to the CME FedWatch tool, traders are now pricing in nearly an 85% odds of a 25 basis points (bps) rate cut in September, up from 75% before the speech.

The Reserve Bank of Australia (RBA) decided to cut the interest rate by 25 bps at the August policy meeting last week, bringing its Official Cash Rate (OCR) to 3.60% from 3.85%. Traders anticipate the Australian central bank to remain cautious after the rate decision. Traders expect the RBA may resume easing with a larger 50 bps rate cut, likely in November. RBA Meeting Minutes will be released later on Tuesday.