• The Australian Dollar may regain ground due to improved market sentiment amid China’s stimulus measures.
• Australian Treasurer Jim Chalmers welcomed China's new stimulus measures as a "really welcome development."
• Higher US Treasury yields contribute support for the US Dollar.

The Australian Dollar (AUD) edges lower against the US Dollar (USD) on Friday. The AUD/USD pair receives downward pressure from stable Greenback amid improved US Treasury yields. However, the downside of the risk-sensitive AUD could be retrained as news of further stimulus from China, its largest trading partner, lifted market sentiment globally.

Australian Treasurer Jim Chalmers is currently in China to strengthen economic ties between the two nations. During his visit, Chalmers held candid and productive discussions with the National Development and Reform Commission (NDRC). He highlighted China's economic slowdown as a key factor in weaker global growth while welcoming the country's new stimulus measures as a "really welcome development."

The US Dollar could face pressure following dovish remarks from Federal Reserve officials. Fed Governor Lisa Cook stated on Thursday that she supported last week's 50 basis points (bps) interest rate cut, citing increased "downside risks" to employment, according to Reuters.

Traders are now expected to closely monitor the US Personal Consumption Expenditures (PCE) Price Index data for August, which is scheduled for release later in the North American session.