• The Australian Dollar halted its two-day winning streak despite the hawkish RBA outlook.
• RBA Governor Michele Bullock stated that it is too early to consider rate cuts.
• The US Dollar extends its decline following the dovish Fedspeak.

The Australian Dollar (AUD) halts its two days of gains against the US Dollar (USD) as traders adopt caution ahead of the release of US Nonfarm Payrolls (NFP). This data may offer more cues on the potential size of an expected rate cut by the Federal Reserve (Fed) this month.

The Aussie Dollar received support from the positive Trade Balance data released on Thursday. Additionally, the Reserve Bank of Australia (RBA) Governor Michele Bullock spoke at "The Anika Foundation" in Sydney on "The Costs of High Inflation," stating that it is too early to consider rate cuts. Currently, the board does not anticipate being able to reduce rates in the near term.

The US Dollar extends its decline following the dovish comments from the Fed officials. However, the positive key economic data might have limited the downside of the Greenback. US ISM Services PMI rose to 51.5 in August from 51.4 in July, above the market expectation of 51.1.

Chicago Fed President Austan Goolsbee said on Friday that the longer-run trend of the labor market and inflation data justify the Fed easing interest-rate policy soon and then steadily over the next year. FXStreet’s FedTracker, which gauges the tone of Fed officials’ speeches on a dovish-to-hawkish scale from 0 to 10 using a custom AI model, rated Goolsbee’s words as neutral with a score of 3.8.