Tonight: US ISM Services PMI

AUD

The Aussie Dollar is down this morning across the board after the slight rise we saw on Monday in reaction to the largely strong PMI data. Asian equities were mixed to open the week with the Nikkei adding 0.5% to trade over 40000 for the first time, whilst the Hang Seng fell 0.1%. The ASX finished 0.1% lower, slipping from all-time highs. In China, all eyes will be on the annual session of the National People’s Congress beginning today where Premier Li Qiang will announce the GDP growth target for 2024. "Around 5%" is expected based on the growth targets announced by local governments so far this year. The GDP growth target is important because it determines the size of policy stimulus for the year. Around lunch time, we'll see China's Caixin Services PMI, expected at 52.9 (prev. 52.7). The main AUD event for the week will be tomorrow's Aussie GDP q/q, expected at +0.2% in line with the previous reading.

USD

AUDUSD opens lower at 0.6509, having gradually declined throughout the evening with the Aussie struggling to hold recent short-term gains. US equities traded relatively flat with the Dow Jones -0.1%, S&P 500 flat and the Nasdaq 0.1%. In tomorrow's early hours we'll see the ISM Services PMI, forecasted in healthy territory at 53.0 (prev. 53.4). Thursday will be a big day for the US Dollar with Fed Chair Powell testifying in Washington DC, JOLTS Job Openings and the ADP Non-Farm Employment Change set for release.

EUR

AUDEUR opens this morning at 0.5996, continuing the steady downward trend from 0.6031 highs seen on Saturday morning. Yesterday, Spanish Unemployment Change printed -7.5k, with a forecasted 50k. To equities, the DAX closed at -0.1% and the CAC 0.3% in the green for the day. A very soft week for euro data until Friday. That morning will see the Main Refinancing Rate, with a forecasted hold at 4.5%. We'll also see the ECB Press Conference and Monetary Policy Statement.
 

GBP

AUDGBP opens this morning at 0.5120, having steadily declined from 0.5164 highs seen on Saturday morning. UK equities saw the FTSE close in the red -0.5%. Soft data releasing today with the BRC Retail Sales Monitor y/y and Final Services PMI printing. The significant data being the Annual Budget Release printing Thursday.   
 

NZD

AUDNZD opens this morning flat at 1.0678 with no major data set to release throughout the week. Today, the ANZ Commodity Prices m/m will print, followed by the GDT Price Index on Wednesday and the Manufacturing Sales q/q on Thursday.