The Australian dollar weakened toward $0.650 on Friday, as dovish RBA outweighed cautious optimism over renewed US-China trade negotiations.The Reserve Bank of Australia’s May meeting minutes showed policymakers saw a stronger case for a 25 basis point cut, emphasizing a cautious, predictable stance. RBA Assistant Governor Sarah Hunter warned that higher US tariffs and rising uncertainty could dampen global growth and weigh on Australia’s economy. Meanwhile, President Trump and China’s Xi Jinping held a phone call on Thursday, where both sides agreed to resume trade talks aimed at ending the ongoing trade war. While this is positive for the global economy, analysts noted that tensions remain high amid a lack of substantive progress. They also flagged the August 12 expiry of the 90-day pause in the US-China trade war as a key downside risk for the Australian dollar. However, the Aussie found support as rising odds for additional Fed rate cuts kept the US dollar under pressure.